Key Post NTMA State Savings aka An Post

Black Rock

Registered User
Messages
34
The term "Post Office Savings" is not accurate - if you check the published annual accounts of the post office (An Post) you will notice there is no statistics on "Post Office Savings" at all, as national savings do not form any part of the financial statements of An Post.

The reason for this is that the post office is an agent of the NTMA (National Treasury Management Agency) in respect of State Savings. The post office provide a counter service to collect savings money on behalf of the Government and the post office immediately, every day, hand all savings money over to the Government under the management of the National Treasury Management Agency where it is known as "NTMA State Savings" which includes Prize Bonds.

"NTMA State Savings" are accounted for only in the annual accounts of the National Treasury Management Agency (NTMA) as being part of the national or sovereign debt.

The NTMA's website ( State Savings dot ie ) has a brochure on the home page which explains everything and lists the products which include Savings Bonds, Savings Certificates, Instalment Savings, Deposit Accounts (such as the Ordinary Deposit Account and the Deposit Account Plus) National Soldidarity Bond and Prize Bonds.

With "NTMA State Savings" products your money is not locked away as you can have it all back (and any interest due) on demand at any time - repayment takes a maximum of 7 days.​


Some products, such as the National Solidarity are weighted to incentivise savers to leave their money for longer. There are four tables below which show what interest rate you definetedly will receive from each of the products if you need to cash them in early before their final maturity date.

AER - Annual Equivalent Rates
Table 1 – Grossed Up AER rates
Table 2 – Net…………… AER rates – actually paid out by the NTMA after tax / tax free

Total Return over the life of the savings product
Table 1(a) – Grossed Up Total return rates
Table 2(b) – Net…………… Total return rates – actually paid out by the NTMA after tax / tax free

Table 1 - “Grossed Up" AER (Annual Equivalent Rate) - explained below

End .......10 Year......5 ½ Year.....4 Year........3 Year
Year.......National.....Savings.......National......Savings
.............Solidarity....Certificate...Solidarity.....Bond
END.......Bond...........................Bond
YEAR__________________________________
1.......... 1.00%........2.88%........1.00%........3.01%
2.......... 1.00%........3.11%........1.00%........3.52%
3.......... 1.00%........3.56%........1.00%........4.42%
4.......... 1.00%........4.00%........4.53%
5.......... 3.55%........4.49%
5½....... 0.00%........4.84%
6.......... 3.10%
7.......... 4.78%
8.......... 4.27%
9.......... 3.88%
10........ 5.41%
“Grossed Up Rate” - given the favourable tax treatment of NTMA State Savings™ products, when drawing up comparative rates tables, for accuracy, it is grossed up rates that are needed for comparison with other products offered by financial institutions, which are subject to DIRT at 27% on the full amount of the interest paid. The grossed up rate is calculated by taking the net after tax rate that is actually paid out by the NTMA (as shown in table below) and dividing that figure by 73 and multiplying by 100 (this provides for the 27% DIRT rate).


Table 2 - NET AER (Annual Equivalent Rate) -This is the net return actually paid out by NTMA after tax / tax free

End .......10 Year......5 ½ Year.....4 Year........3 Year
Year.......National.....Savings.......National......Savings
.............Solidarity....Certificate...Solidarity.....Bond
END.......Bond...........................Bond
YEAR__________________________________
1.......... 0.73%........2.10%........0.73%........2.20%
2.......... 0.73%........2.27%........0.73%........2.57%
3.......... 0.73%........2.60%........0.73%........3.23%
4.......... 0.73%........2.92%........3.31%
5.......... 2.59%........3.28%
5½....... 0.00%........3.53%
6.......... 2.26%
7.......... 3.49%
8.......... 3.12%
9.......... 2.83%
10........ 3.95%

Table 1(a) - “Grossed Up" Total Return

…….........10 Year......5 ½ Year.....4 Year........3 Year
…….........National.....Savings.......National......Savings
..............Solidarity...Certificate...Solidarity.....Bond
END.......Bond...........................Bond
YEAR__________________________________
1.......... 1.00%........2.88%........1.00%........
3.01%
2.......... 2.00%........6.30%........2.00%........
7.12%
3.......... 3.00%......10.96%........3.00%......
13.70%
4.......... 4.00%......16.71%......
19.07%
5.........18.70%......
23.97%
5½....... 0.00%......
28.77%
6.........19.70%
7.........
37.14%
8.........
38.14%
9.........
39.14%
10.......
64.79%


Table 2(a) - NET RETURN -This is the net return actually paid out by NTMA after tax / tax free

…….........10 Year......5 ½ Year.....4 Year........3 Year
…….........National.....Savings.......National......Savings
..............Solidarity...Certificate...Solidarity.....Bond
END.......Bond...........................Bond
YEAR__________________________________
1.......... 0.73%........2.10%........0.73%........
2.20%
2.......... 1.46%........4.60%........1.46%........
5.20%
3.......... 2.19%........8.00%........2.19%......
10.00%
4.......... 2.92%......12.20%......
13.92%
5.........13.65%......
17.50%
5½....... 0.00%......
21.00%
6.........14.38%
7.........
27.11%
8.........
27.84%
9.........
28.57%
10.......
47.30%
 

Brendan Burgess

Founder
Messages
43,746
Black Rock

That is a great post. Thanks.

I have separated it out from where you had it and made it a key post.

brendan
 
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