Comments on: National Solidarity Bond

By: Money Saving Expert

Money Saving Expert — Tue, 09 Nov 2010 13:19:23 +0000

Karen – here are the terms for the Solidarity Bond.
http://www.statesavings.ie/Downloads/NSBTermsAndConditions.pdf
It states that the Bonuses are tax free and that “Normal Revenue Commissioners requirements will apply to DIRT exempted accounts. ”
I think that means health levy and PRSI might apply.
Check with Revenue for the full story …

By: Karen

Karen — Tue, 09 Nov 2010 12:21:29 +0000

I have money ready to put into this but now wonder if its a good idea, is there anywhere to get a definite answer on the income tax issue? Is it only on the annual interest and not on the bonus?

By: Money Saving Expert

Money Saving Expert — Mon, 08 Nov 2010 13:07:16 +0000

Marie – it appears that it is just the annual interest that is to be declared .BUT – other AN Post Savings Bonds explicitly state that “interest earned on same is exempt from DIRT, income tax and capital gains tax and is not returnable as income to the Revenue Commissioners”
The lack of such a clear statement on the Solidarity Bond makes it hard to say for certain.

By: Marie

Marie — Mon, 08 Nov 2010 12:26:58 +0000

OK – just to confirm that my understanding is correct: DIRT will be payable on the interest earned, and then Income tax will be payable on total earnings i.e. bonus plus interest after DIRT?

By: Money Saving Expert

Money Saving Expert — Sun, 07 Nov 2010 22:49:58 +0000

My previous comment was wrong . – according to Revenue – the annual interest on the Solidarity Bond is subject to Income tax and it will need to be declared on tax returns.

By: Money Saving Expert

Money Saving Expert — Sun, 07 Nov 2010 22:49:04 +0000

Finbar – my apologies – it seems you were correct. Revenue say that people will be expected to declare the annual interest from these bonds on tax returns.

By: How much money are you needlessly losing to foreigners? - Page 3

How much money are you needlessly losing to foreigners? - Page 3 — Fri, 29 Oct 2010 11:13:34 +0000

[...] per annum and then if you stay in for 10 years you get a bonus and it works out at 4.14% apparently National Solidarity Bond | Money Guide Ireland There is a reason foreign bond holders are looking for near 7% on long term bonds – risk. Now if [...]

By: lara

lara — Mon, 12 Jul 2010 11:57:46 +0000

If I put 20,000euro in,is my 20,000euro secure? I would hope to leave it in for 10 years, will I get 30,000 euro at the end of 10 year period? If I need to access my money sooner, will I be penalised in any way? Am I gauranteed that the interest rate will remain the same, ie not go lower, over the 10 year period?

By: Jeanette

Jeanette — Sat, 10 Jul 2010 16:30:38 +0000

Do you have to be a resident to avail of this bond?

By: Moneymate

Moneymate — Tue, 06 Jul 2010 11:32:18 +0000

Ben – the rate is not brilliant – as it says in the main post “After DIRT this comes to 3.96% AER.
A normal deposit account would need to be paying 5.3% before DIRT to match that rate.”

There are no normal deposit accounts giving 5.3% at the moment – but rates could rise in the next few years.
See the best bank deposit rates here .