National installment savings scheme

Richard tea

Hope this is the right section. I started saving with an post Nation installment saving scheme near 5 years ago. When I signed up the terms were save for 5 years and you get 20% tax free on top of that after the 5 years. Just from doing a quick browse I see no mention of the 20% now but a figure of 14% after 5 years.

Has the rate changed? If so, when? & should I have been notified?

bananas10

Have a look at www.statesavings.ie. By the look of it the rates changed in Dec 2012 but because you took out your savings prior to that, it seems the old rates apply to you. Give them a quick ring I suppose. Here's a link to the old leaflet with the old rates:
http://www.anpost.ie/nr/rdonlyres/f981befc-c6a7-4dcf-9419-e8d2adb7d509/0/anpostsavingsntmadl_purple.pdf

Richard tea

bananas10 wrote: »

Have a look at www.statesavings.ie. By the look of it the rates changed in Dec 2012 but because you took out your savings prior to that, it seems the old rates apply to you. Give them a quick ring I suppose. Here's a link to the old leaflet with the old rates:
http://www.anpost.ie/nr/rdonlyres/f981befc-c6a7-4dcf-9419-e8d2adb7d509/0/anpostsavingsntmadl_purple.pdf

Thank you. Ill call them tomorrow:)

Richard tea

I feel like I have been duped:eek: Just off the phone to an agent from An Post.

When I started the National installment savings scheme in 2009 I thought it was a case of saving for 5 years and at the end I would receive a 20% tax free lump on top.

According to the agent from An Post, at the end of each year my savings go into an account. I will only receive the 20% tax free lump on the first & maybe second account. The rest of the accounts will have a lower % tax free lump.

Does this sound right to anyone else?

So am I right in thinking that the account that started this year will not mature until 2018?

srsly78

Yes it sounds right. The bonus only applies to principal that has been held for 5 years. So no you don't get bonus interest on your interest, until that interest has "matured" over 5 years. If it makes you feel any better, your "account" from 2010 will mature in 2015. They are giving you exactly what they promised.

Richard tea

srsly78 wrote: »

Yes it sounds right. The bonus only applies to principal that has been held for 5 years. So no you don't get bonus interest on your interest, until that interest has "matured" over 5 years. If it makes you feel any better, your "account" from 2010 will mature in 2015. They are giving you exactly what they promised.

Ill feel better once I cancel it. Its my own fault for not understanding it. Lesson learned.

srsly78

I think that would be unwise. It's a pretty good deal that isn't available anymore. I was just about to open one of the national schemes but they suddenly dropped the rates.

Richard tea

srsly78 wrote: »

I think that would be unwise. It's a pretty good deal that isn't available anymore. I was just about to open one of the national schemes but they suddenly dropped the rates.

I understand what your saying but my plan was to save for 5 years in order to buy something at the end of the 5 years.