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Post office 10 year national solidarity bond

  • 02-05-2017 08:32PM
    #1
    Lostinlife
    Registered Users, Registered Users 2 Posts: 16 ✭


    16% tax free and 1.5% aer. If I invest 1000, my approx return is 160 after 10 years?


Comments

  • #2
    bridster007
    Registered Users, Registered Users 2 Posts: 417 ✭✭bridster007


    Lostinlife wrote: »
    16% tax free and 1.5% aer. If I invest 1000, my approx return is 160 after 10 years?
    Yes.


  • #3
    Geuze
    Registered Users, Registered Users 2 Posts: 14,262 ✭✭✭✭Geuze


    Yes.

    http://www.statesavings.ie/products/Pages/NationalSolidarityBond.aspx


  • #4
    Pawwed Rig
    Registered Users, Registered Users 2 Posts: 22,436 ✭✭✭✭Pawwed Rig


    Does that even come close to beating inflation? Why would someone invest in this? Genuine question


  • #5
    bridster007
    Registered Users, Registered Users 2 Posts: 417 ✭✭bridster007


    Pawwed Rig wrote: »
    Does that even come close to beating inflation? Why would someone invest in this? Genuine question

    We won't know what inflation will be for the 10 years.
    Inflation is different for everyone anyway.
    Its important to have savings in life and many people like reasonable security. This security comes with a low return.
    It also offers the opportunity to withdraw if needed, of course this affects the interest rate you get.

    Most important point, better to save even at low rates than waste it on something not really needed.

    There are options to invest in similar products with shorter periods but lower returns.

    Any debt should be paid down first though.


  • #6
    Pawwed Rig
    Registered Users, Registered Users 2 Posts: 22,436 ✭✭✭✭Pawwed Rig


    bridster007 wrote: »
    Any debt should be paid down first though.

    That is it. Much better to pay off a mortgage than make that investment. Alternatively paying the cash into a pension pot would be alot more lucrative.

    I understand that everyones needs are different but the yield on this investment seem way too low for me (although I assume it is tax free after 10 years which improves the comparative yield somewhat).


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