State savings new issue

[mcriot29]

I was on the phone to them setting up my online banking with them I asked about any new issue.
Guy told me they always here talk well before it happens but not a word yet so I guess nothing this month anyways

 

[Sarenco]

10-year Irish government bonds are now yielding around 2.2%, which makes State Savings products look pretty unattractive at the moment.

 

[Groucho]

10-year Irish government bonds are now yielding around 2.2%

Is that tax free?

 

[Sarenco]

Is that tax free?

Interest payments on Government bonds are subject to income tax but there’s no CGT on capital gains.

 

[horse7]

Are you sure about that, this is a quotation from NTMA: Fixed Term Products, Instalment Savings and Prize Bonds winnings are not subject to Deposit Interest Retention Tax (DIRT) and are exempt from Income Tax, Pay Related Social Insurance and Capital Gains Tax in Ireland.

 

[Sarenco]

State savings products are tax-free but the question related to government bonds.

 

[mcriot29]

Government bonds you pay income tax prsi etc on them

 

[noproblem]

Will savings interest rates go up in 2022 Ireland?


ECB rates will be rising again in 2022 – so we expect some small increases in deposit rates over the coming months. You can get interest rates at online banks in Europe that are as much as 200 times bigger than the tiny 0.01% offered by the main banks in Ireland.

Give us a link to all of those banks and rates please?

 

[ClubMan]

Give us a link to all of those banks and rates please?

And also the characteristics of such accounts... E.g. demand, notice, fixed term, lump sum, regular saver, min/max balance, etc. I can't imagine that there are too many banks offering 2% gross on deposits/savings (and I'm discounting UK/£ accounts for obvious reasons).

 

[DCSF]

Agree - I think going back to the 19% after 10 years level (at most) they had for quite a while, is more realistic by year end.

Anyone hear anything as yet?

 

[noproblem]

Anyone hear anything as yet?

Not so much as a whisper. My advice is, believe nothing unless you hear it from me first and you might be waiting a while

 

[losttheplot]

And also the characteristics of such accounts... E.g. demand, notice, fixed term, lump sum, regular saver, min/max balance, etc. I can't imagine that there are too many banks offering 2% gross on deposits/savings (and I'm discounting UK/£ accounts for obvious reasons).

You can find 2% on Raisin.ie. 2yr Fixed term. 3% for 5 years. Both are with a French bank
There's a referral bonus of €50 if you're interested.

 

[ClubMan]

You can find 2% on Raisin.ie. 2yr Fixed term. 3% for 5 years. Both are with a French bank
There's a referral bonus of €50 if you're interested.

What's the tax treatment in that case?

 

[losttheplot]

What's the tax treatment in that case?

Some banks deduct Witholding Tax at their domestic rate, if you supply Tax Residency Certificate, they refund it. Others don't. You make a declaration to revenue in your tax return

 

[irbx]

Some banks deduct Witholding Tax at their domestic rate, if you supply Tax Residency Certificate, they refund it. Others don't. You make a declaration to revenue in your tax return

Is it taxed as income or dirt?

 

[losttheplot]

Is it taxed as income or dirt?

DIRT as far as I know.

 

[DCSF]

Not so much as a whisper. My advice is, believe nothing unless you hear it from me first and you might be waiting a while

Surely if the ECB hike rates again tomorrow deposit rates will have to start moving up?

 

[noproblem]

Surely if the ECB hike rates again tomorrow deposit rates will have to start moving up?

Why would you think that?