Brendan Burgess
Founder
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- 52,117
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?
What is the return on the bond?
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%
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?