We have now reviewed the workings on the 'grossed up' comparable rates on the State Savings products post recent rate changes.
The below methodology provides a fairer methodology of calculating the comparable grossed up rates. The best buys have been updated to reflect this.
The following tables (A, B, C and D) show the actual return that the State is paying on each of the 3,4,5½ and 10 year fixed rate, term State Savings products. The second row and third row of each of the Tables A, B, C & D then shows the “Gross Repayment” and “Total % Return” which a competing term savings product which is subject to the new DIRT rate (41% shown on the second row coloured blue) or the new DIRT & PRSI rates (45% shown on the third row coloured salmon) must pay to achieve a “Net After Tax Repayment” which matches that of the tax free State Savings products.
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(Most browsers let you see the images above but if you cannot see the images above they are also [broken link removed] and [broken link removed]).
The below methodology provides a fairer methodology of calculating the comparable grossed up rates. The best buys have been updated to reflect this.
The following tables (A, B, C and D) show the actual return that the State is paying on each of the 3,4,5½ and 10 year fixed rate, term State Savings products. The second row and third row of each of the Tables A, B, C & D then shows the “Gross Repayment” and “Total % Return” which a competing term savings product which is subject to the new DIRT rate (41% shown on the second row coloured blue) or the new DIRT & PRSI rates (45% shown on the third row coloured salmon) must pay to achieve a “Net After Tax Repayment” which matches that of the tax free State Savings products.
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(Most browsers let you see the images above but if you cannot see the images above they are also [broken link removed] and [broken link removed]).