New State Savings 4 Year "Solidarity Bond" Term Deposit

Discussion in 'Deposits' started by CiaranT, Dec 12, 2010.

  1. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068
    I reckon it's going into the State Savings Account that was set up for you (AER 0.25%). I would ring them and get the balance and maybe change option of payment in future to external bank a/c or cheque payment. You will need to complete 'An Application for Repayment Form' to get the money which would be by cheque unless over the phone they can give you other options.
     
  2. The Ghoul

    The Ghoul Frequent Poster

    Posts:
    326
    Thanks theresa1, I will do that.
     
  3. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068
    I got two statements in the post today dated Feb 10, 2014.

    Money lodged in Dec 2013 and Jan 2014.

    "Since the introduction of the new issue 4 National Solidarity Bond, a single statement will be issued for each new purchase by way of acknowledgment."

    "A full statement of your entire National Solidarity Holdings will be issued twice a year."
     
  4. Ryan

    Ryan Frequent Poster

    Posts:
    48
    If you open an account with a few thousand and add to it over the 4/10 years, odes each addition count as a new bond?
     
  5. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068

    Minimum purchase is €50 but yes each time you make an individual lodgement you are buying a new individual bond. You are not adding to anything but opening a new bond each time with your new lodgement.
     
  6. Ryan

    Ryan Frequent Poster

    Posts:
    48
    Thats a bit of a nuisance. Say if you put in a monthly amount over the 4 years, you effectively have almost 50 different bonds.
     
  7. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068
    Anyone have any idea why the maximum direct debit payment per month is €1,000?
     
  8. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068
    Sorry but another question - anybody use An Post mybills.ie to purchase 4 or 10 year solidarity bonds?

    The reason I ask this question is that I am fed up constantly taking out money from local ATM and then when I have say €3,000 in cash going along to my local post office to purchase a new bond.

    If I use my visa debit the max is €1,500 and If I set up a direct debit i can only do €1,000 max per month.

    I was thinking of getting a cheque book for the sole purpose of purchasing bonds but maybe i might try the mybills option with a bank account.
     
  9. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068
    I have used the one-off payment option on mybills.ie and it works well. Also I recently got my Annual Statement of Account. When i look around at the rates on offer I just keep sticking away more money into the 10 year bonds.
     
  10. Daddy

    Daddy Frequent Poster

    Posts:
    714
    I swee where your coming from but10 years a very long time and interest rate increases are more than likely starting sometime in 2015.
     
  11. georged3rd

    georged3rd Frequent Poster

    Posts:
    37
    Calculating interest

    To confirm, with the 10yr NSB at 2.66% AER on an initial investment of 55K does that equate to €1463 in interest every year? 55k * 0.0266
    So after 10yrs the total value will be 55k + (1463*10) = 55k + 14,630 = €69,630? I must be going wrong somewhere here.
     
  12. The Ghoul

    The Ghoul Frequent Poster

    Posts:
    326
    After 10 years, 55,000 put in the NSB would be worth 71,500, the initial amount plus 30%.

    This works out at 2.66% AER. The reason you got only 69,630 is you don't seem to have compounded the interest (which you should if working from an AER figure)

    Also, you need to leave the money in the full terms to get 2.66% AER. See page 2 of this document
    http://www.statesavings.ie/Downloads/Brochure3.PDF
     
  13. georged3rd

    georged3rd Frequent Poster

    Posts:
    37
    Thanks, appreciate the help.

    I found a compound interest calculator online confirming your figure also; http://www.moneychimp.com/calculator/compound_interest_calculator.htm

    With the mybills.ie method of buying 4 or 10yr NSBs I assume that the account number you enter is your existing NTMA NSB account number (assuming you already have an NSB) and that any purchases (one-off or regular) are just grouped under that same account number but the start date is that of the payment date. Correct?

    I assume that if you entered an account number for an older NSB issue (e.g. 2nd issue or 3rd, rather than the current 4th issue) even if the maturity date for that older NSB is not up yet, that it automatically gives you a 4th issue bond, right? To think otherwise would be wishful but just thought I'd check.
     
  14. The Ghoul

    The Ghoul Frequent Poster

    Posts:
    326
    That is correct, any purchases made now will be issue 4 and will mature 10 years from the date of purchase. There is no way to purchase issues 1, 2 and 3. The only way that I can see to acquire older issues is to inherit them - existing accounts can be transferred to a beneficiary without having to encash them.

    I haven't use mybills.ie myself yet but it would be normal when buying State Savings products to be asked for an existing account number (if any) presumably to allow cross referencing and make things more efficient.
     
  15. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068
    Just got another Statement for My State Savings Account which lists my last 2 purchases for issue 3 and my interest repayments so far.

    Any purchases for issue 4 will not be on this Statement and of course no annual interest as it does not apply for issue 4.
     
  16. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068
    I have used the one-off payment option on mybills.ie and it asks for your account number. This is actually your reference number which would be on the back of your personalised NSB card.

    Each bond actually has it's own account number so your most important number is your reference number but State Savings also call this an account number sometimes which can cause confusion, another example it's on the direct debit mandate.
     
  17. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068
    I just got my Annual Statement of Account and it gives Interest amounts from Issue 4 of the 10 year bond. It has a Issue column beside each bond giving it's number for the 10 year bonds but it does not have this for the 4 year bonds.

    Can someone check your Statements. I previously had a statement sent out which did not mention 2 bond's. It seams like somebody uses an excel spreadsheet to put together your statements but does not always get it right - that's how it seams.
     
  18. theresa1

    theresa1 Frequent Poster

    Posts:
    1,068
    I just got a letter in the Post as my 4 years is nearly up -as well as the yearly interest (no longer available with 4 and 10 year bonds) I'll be getting a maturity bonus of aprox. €16,000.

    Actually wish now in hindsight I had gone with a 10 year bond -anyway I've done well so I cant complain. I'm now thinking a 5 year Cert maybe even go the 10 year bond this time but rate obviously not as attractive as before.

    If I re-invest the €120,000 limit does not apply. Any thoughts?
     
  19. dub_nerd

    dub_nerd Frequent Poster

    Posts:
    1,441
    I have a four year maturing as well. Reinvesting it would make a couple of tenths of a percent more than I can get from a deposit account or Notice Saver with Rabo. At those rates I don't consider it worthwhile tying it up again for years.
     
  20. gravitygirl

    gravitygirl Frequent Poster

    Posts:
    336
    But state savings is tax free is it not, so it's actually a bit more than Rabo etc.