National Solidarity Bond

amen

Silly question , two children (7 and 5) have €1,00 each ( save from gifts,birthdays money etc). Was thinking of putting it into the National Solidarity Bond so they will get some growth over the next 10 years.

Is this considered secure ( or as can be today) or if Ireland defaults would they loose this ?

I look at the 10 year term accounts with the banks but they all want large sums of money.

hmmm

amen wrote: »

Is this considered secure ( or as can be today) or if Ireland defaults would they loose this ?

In normal circumstances it would be regarded as secure, but these are not normal circumstances. In the event of a default, all government debt (which these are) could default (defaults are rarely "entire").

If you were putting in 100k I'd maybe say the risk of default is enough to recommend avoiding it. Putting in a small amount is different, if we do default you'll have enough problems to think about without being worried about 2k.

I don't like tying money up for 10 years however, we are at ultra low interest rates. Something like An Post savings certificates may be a better option.

amen

thanks for your reply