Key Post National Solidarity Bond FAQ

Discussion in 'Deposits' started by Brendan Burgess, May 4, 2010.

  1. Brendan Burgess

    Brendan Burgess Founder

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    32,826
    An Post FAQ

    What is the return on the bond?


    end of {br}year|income|bonus|annualised {br}gross return
    1|1%|0|1%
    2|1%|0|1%
    3|1%|0|1%
    4|1%|0|1%
    5|1%|10%|2.89%
    6|1%|10%|2.56%
    7|1%|22%|3.8%
    8|1%|22%|3.44%
    9|1%|22%|3.15%
    10|1%|40%|4.29%
    Note: The brochure is incorrect in its calculations of the annualised returns. This is discussed in this thread. (Thanks to Homer for calculating the correct returns)

    Summary
    You will get an annualised payment of 1% which is subject to DIRT - currently 25%.

    If you cash it after 5 full years, you will get a bonus according to the above table.

    If you hold onto it for the full ten years, you will get a bonus of 40%.

    The return does not justify tying up your money for 10 years
    Most of us simply can't plan our finances that far ahead.
    The world is changing so fast, that you may well want to withdraw your money before the ten years.

    The risk
    The Irish government is AA rated. Anything could happen in the next ten years. If we don't cut public expenditure and raise taxes, there is a small risk that Ireland will not be able to honour its debts.

    Invest in this if you want to support the infrastructure projects

    What are the alternatives?

     
  2. Homer

    Homer Frequent Poster

    Posts:
    365
    Last edited: May 4, 2010
    Annualised gross return is as follows.

    1 1.00%
    2 1.00%
    3 1.00%
    4 1.00%
    5 10% 2.89%
    6 10% 2.56%
    7 22% 3.80%
    8 22% 3.44%
    9 22% 3.15%
    10 40% 4.29%

    Regards
    Homer
     
    Last edited: May 4, 2010
  3. CiaranT

    CiaranT .

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    4,548
    From the Term Deposit best buy thread:

     
  4. Anfear

    Anfear Frequent Poster

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    thanks, great info
     
  5. DeeKie

    DeeKie Frequent Poster

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    94
    Is this considered a reasonable product?
     
  6. SPC100

    SPC100 Frequent Poster

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    In another thread oldtimer beautifully presented the information like this. I havent checked the figures, but I think it would be worth listing in alternatives, and in the FAQ.

     
  7. DeeKie

    DeeKie Frequent Poster

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    94
    Thanks SPC100
     
  8. Tyrol

    Tyrol Guest

    Hi,
    If one invests in this bond and the IMf take over/ Ireland goes bust, is your money still safe?
     
  9. Chris

    Chris Frequent Poster

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    Nope
     
  10. CiaranT

    CiaranT .

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    No, if the IMF/ECB provide emergency aid to Ireland, this does not automatically mean that savers in such products would loose their money.
     
  11. george.shaw

    george.shaw Frequent Poster

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    252
    Not automatically but important to acknowledge that there is the risk that they could lose their money - not to mention the real euro currency risk - Spain has just been downgraded leading to renewed concerns of contagion in sovereign debt and currency markets.
     
  12. george.shaw

    george.shaw Frequent Poster

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    252
  13. Adamant

    Adamant Guest

    Quick question: With the National Solidarity Bond can one keep adding regular amounts (like with the SSIA)? Does this then make it more attractive then Saving Certs for someone with no limp sum but looking to save for 10 years.

    Also is the bonus calculated on total amount you have saved by the end of year 10?
     
  14. NorfBank

    NorfBank Frequent Poster

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