The National Solidarity Bond

Details of the National Solidarity Bond have been released. Headline: return of 50% gross after 10 years. Run by the NTMA.

Details here:

Commentary here:

I think it was Charlie Weston on Matt Cooper basically torn it apart this evening.He said An Post bonds offered a better over all return he did say possible a good option as gifts for children in so far as 10 years wouldnt really matter to a kid

Sounds like a great return but what will the euro be worth by that stage?

:confused: Sounds like a dreadful return to me, but you’re right to have concerns about the value of the Euro.

Seems poor enough to me also,I would imagine they are hoping for a big take up from the less financially literate.

I’ll correct that, sounds like a great return (but it’s not really) and what will the euro be worth at that stage.

Maybe the people who lost money on the great Eircom share deal can regain some of it with this highly lucrative scheme 8-

:slight_smile: Anyone who can afford to dump €500 into this will be well aware that it’s a lemon.

Its possible that some people would invest in this to help recovery of the economy - semi-philanthropic reasons. But there’s little info. on what the fund will be used for. In the FAQ, there’s the following:

Question: ‘Is my money invested in a specific infrastructure project?’
Answer: ‘No, while it will be an additional source of funding for capital investment it is not ringfenced for expenditure on a specific project.’

Vague, non-commital, defeating the purpose of a ‘Solidarity’ bond, IMO.

:slight_smile: Anyone who can afford to dump €500 into this will be well aware that it’s a lemon.

I think your giving the general public too much credit, greed is the new religion in this fine island. The average joe who still has their SSIA money or savings will think wow, I give you my money and for doing absolutely nothing you’ll give me back 1.5 times that in 10 years, FREE MONEY 8DD . It’s not as if they have made bad financial decisions in their droves in the last few years, Eircom, 100% mortgages, buy-to-let, Anglo shares and even buying shares in unexplored offshore oil deposits around the coast of Ireland :open_mouth:

The tax free lump sum aspect makes this the equivalent of a 5.3% term deposit account with annual 25% DIRT. If DIRT increases, it’s more attractive. It won’t be easy to find that return in a regular deposit account but it couldn’t be considered risk free. It could be enough though for those that believe that there will be a euro, we’ll still be in it and inflation won’t get out of control over the next 10 years. Oh and that we won’t default on ourselves.
An Post don’t offer a 10 year bond as far as I can see but their 3 and 5.5 year products offer a better return.

Sorry m;y bad that was one of the points Weston made that An post offered a better return that didnt entail 10 years

I like the term “Solidarity” as well, stick together and back Fianna Fail into the next Celtic tiger era.

Let’s lend ourselves some money to pay back our debts, use some of it to buy bad loans, keeps house prices artificially high, pay each other ridiculous sums for said houses, pay loads of tax to the Government (ourselves) on said houses so that we can pay back the money we borrowed from ourselves in the first place and everything will be fine 8DD

And who also know with relative certainty that they will not need the money for the next 10 years.

IMO it only makes sense to put money away for such a long term if you are an institutional investor. An individual could need that money for any number of reasons over the next 10 years.

And of course we should borrow huge sums from the banks to by buy said property from not only each other but developers too, who’s the real winner here, it’s certainly not the public :nin

If you needed to withdraw your initial €1000 after 5 years it would have earned €38. If you withdrew it after 8 years it would have earned a total of €61.60. Thanks, but no thanks.

Indeed and an ever increasing number of reasons. For the more paranoid, it mightn’t suit to have the government’s hands on your cash for that long a period, they might start to think it’s theirs.

So if this is a success, the banks will lose deposits. If it’s a failure, it sends out a bad message. Deadly buzz

Good point, so when that happens we can lend ourselves even more money to put more money into saving the banks…

I know, wtf? On one hand we’re buying loans off the banks to improve their loan to deposit ratios on the other hand we’re ‘enticing’ people to move their deposits