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National Solidarity Bond

Comments

  • #2
    pocketdooz
    Registered Users, Registered Users 2 Posts: 1,559 ✭✭✭pocketdooz


    foxyboxer wrote: »
    Just caught the tail end of this on the news last night.
    http://www.statesavings.ie/products/Pages/NationalSolidarityBond.aspx

    50% interest after 10 years (47.5% net) with no charges for withdrawal.
    Not bad for a lump sum retirement nest egg.

    Thoughts?

    Bit more to it.

    It's 1% per year gross (Pay DIRT on that) then you get a 'bonus' if you leave it in for 5 years, 7 years and at 10 years. You need to leave it in for the 10 years to make it worthwhile.

    If you leave it in for the whole 10 years you make 3.9% ish net per year. I would be happy with a 3.9% net gain per year for the next 2/3 years as that beats most if not all deposit/savings rates in Ireland now ... but ...

    I am expecting inflation from 2012/2013 ish at which time rates will start to go up again and you could be back to 5% / 6% deposit so I think about 3/4 years into your 10 years you will be making less than you could elsewhere.

    If this is true and you withdraw after 4 years all you've made is 1% a year (before DIRT) which is crap.

    All in all, a bog standard attempt by the government to get access to cheap financing.

    .


  • #3
    RoadKillTs
    Closed Accounts Posts: 1,710 ✭✭✭RoadKillTs


    I was expecting it to be better. 10 years is a long time to lock your money away for 3.9% pa and lets face it a lot will change within that time. If it was a 5 year term I'd be a lot more interested. :)


  • #4
    eclectichoney
    Closed Accounts Posts: 4,291 ✭✭✭eclectichoney


    Aye - I can't see many going for it when you can pretty much get a broadly comparable rate in many other institutions at the moment.


  • #5
    dazed+confused
    Registered Users, Registered Users 2 Posts: 1,022 ✭✭✭dazed+confused


    What about if you're paying into the scheme by direct debit? Are you at a huge disadvantage if you haven't got a lump sum to begin with?


  • #6
    UpAgainToday
    Closed Accounts Posts: 113 ✭✭UpAgainToday


    foxyboxer wrote: »
    Just caught the tail end of this on the news last night.
    http://www.statesavings.ie/products/Pages/NationalSolidarityBond.aspx

    50% interest after 10 years (47.5% net) with no charges for withdrawal.
    Not bad for a lump sum retirement nest egg.

    Thoughts?

    Some other poster mentioned it was an attempt by the gov to access cheap financing - AGREED :). Do not bother with it especially since schemes like that are only created for you to keep the money there for the full period and in this case 10 years which is far too long :D Better opportunities will pop up


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