Solidarity Bond Will Not Double Your Money

According to the Irish Times today in this  article about the new Solidarity Bond –

” An individual who invests the minimum sum of €500 will almost double their money, earning a net return of €475.”

I hope Irish Times readers realise this is an error and don’t all rush out to buy the new Solidarity Bond based on this incorrect information.
If the figures quoted were correct – it would mean the bonds had an interest rate of 95% over the ten years. The Irish Times article does mention the correct rate – but many people may be misled by the figures given.
The reality is – that the actual net rate over 10 years is 47.5%.  An investment of €500 over 10 years will result in a return of  €237.50 .
To get the same rate in a bank account subject to DIRT – you would have to be getting a rate of 5.28%

Free Business Accounts

See more details of the Solidarity Bond here