The National Solidarity Bond was first announced in the 2010 Budget and it was launched in April 2010 . At the launch it paid an annual interest rate of 1% a year (fixed) with added bonuses for those who left the money in for five, seven and ten years .
Update : June 2013 – The interest rates and bonuses for new investors in the National Solidarity Bond have been reduced from June 3rd 2013 – details of the original rates and the new lower rates are given below .
Rates of Return on 10 Year Solidarity Bonds bought before June 3rd 2013
The maximum maximum gross return possible was 50% over 10 years .
If you cash in the bond at the end of 5 years you will get a 10% Bonus
At the end of 7 years you will get a 22% Bonus and if you keep the bond for 10 years you will get the maximum 40% Bonus. DIRT will be payable on the basic interest – but not on the bonuses.
A 50% gross return over 10 years is 4.14% AER . After DIRT this comes to 3.96% AER.
An investment of €1000 in solidarity bonds for 10 years will result in a balance of €1475. (3.96% AER Net)
Keeping €1000 in the solidarity bond for 5 years will give a balance of €1137.50 – after DIRT which is 2.5% AER (Net).
Rates on bonds bought from June 2013 Onwards
The maximum maximum gross return possible is now 35% over 10 years.(reduced from 50%)
The annual rate of 1% interest remains the same but the bonuses have been reduced .
If you cash in the bond at the end of 5 years you will get a 6% Bonus instead of 10%
At the end of 7 years you will get a 13% Bonus (reduced from 22%) and if you keep the bond for the full 10 years you will get the highest 25% Bonus. DIRT will be payable on the basic interest – but not on the bonuses.
A 35% gross return over 10 years is 3.05% AER . After DIRT this comes to 2.79% AER.
An investment of €1000 in solidarity bonds for 10 years will result in a balance of €1317 Net
The maximum individual investment allowed in the solidarity bond is €250,000 . (€500,000 for joint accounts) There are no fees, charges or sales commissions attached to the bond.
The bonds are available for purchase in all post office.
The minimum individual investment in this Solidarity Bond is €500 . Savers can deposit a lump sum or put in regular lodgements of €25 or more. (The €25 a month will be put in an An Post deposit account until you reach a balance of €500 – after 20 months).
Savers can access their money at any time without penalty – but the longer money is left invested the greater the return in the form of bonuses.
Money invested in these solidarity bonds will be used by the government to finance capital-investment programmes.
See other bank savings rates for comparison.