National Solidarity Bonds

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HouseBuyer10

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Hi everyone
Last year I put a small lump sum in a 10 year National Solidarity Fund at 16% total return. This year, from 1 October, the total return is going up to 22%.

Does that mean that I will automatically benefit from that as well or is it better to cash the sum in and invest it in the same fund after 1 October?

Thank you.
 
HouseBuyer10 said:
Hi everyone
Last year I put a small lump sum in a 10 year National Solidarity Fund at 16% total return. This year, from 1 October, the total return is going up to 22%.

Does that mean that I will automatically benefit from that as well or is it better to cash the sum in and invest it in the same fund after 1 October?

Thank you.
Click to expand...
No, you signed up to 16%, and that's what you'll get. If you put more funds into a solidarity bind in October, that would get the 22%. Neither of these rates are great.
 
HouseBuyer10 said:
Hi everyone
Last year I put a small lump sum in a 10 year National Solidarity Fund at 16% total return. This year, from 1 October, the total return is going up to 22%.

Does that mean that I will automatically benefit from that as well
Click to expand...
No.
HouseBuyer10 said:
or is it better to cash the sum in and invest it in the same fund after 1 October?
Click to expand...
You'd have to compare the returns on leaving the existing investment in place for the remaining 9 years versus investing in the new issue for 10 years.

Edit: my post crossed with @Fortune's.
 
HouseBuyer10 said:
Hi everyone
Last year I put a small lump sum in a 10 year National Solidarity Fund at 16% total return. This year, from 1 October, the total return is going up to 22%.

Does that mean that I will automatically benefit from that as well or is it better to cash the sum in and invest it in the same fund after 1 October?

Thank you.
Click to expand...
There is an expansive discussion on this here:

NTMA increases rates for State Savings products

NTMA increases rates for State Savings products Rates on new fixed term products to increase. The total tax free return on the new fixed rate products are as follows: 3-Year Savings Bond from 1.0% to 4.0% 5-Year Savings Certificate from 5.0% to 9.0% 6-Year Instalment Savings from 5.5% to 10%...
www.askaboutmoney.com
 
While you mayget a better return by investing elsewhere, to answer your specific question, assuming that you want to stay with State Savings, you will do better if you cash-in your current holding given that it was issued in 2022, and reinvest in the new issue. It may be worth waiting to cash in until after the anniversary date of the original investment as the rates change on each anniversary date.
 
@Fortune

I'm curious ...why is a guaranteed 22% interest "not great"?

What better (guaranteed return) is available on the Irish market?
 
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