asked the Minister for Finance if he will state the interest payable on the respective issues of savings certificates after maturity; and whether this interest is compounded.
Ceisteanna—Questions. Oral Answers. - Interest on Savings Certificates.
12.
As the answer is in the form of a tabular statement, I propose, with the permission of the Ceann Comhairle, to circulate it with the Official Report.
Following is the statement:—
|
Savings Certificate Issue |
On Sale |
Cost Price of unit Certificate |
Original Terms |
Interest accretions during extension periods (a) |
|
s. d. |
s. d. |
|||
|
First |
June, 1923 — February, 1931 |
15/6 |
15/6 to 20/- after 5 years |
First extension—5 years from 5th anniversary of purchase(20/- to 26/-)1d. for each complete month with bonus of 1/- at end of period. |
|
Second extension—10 years from 10th anniversary of purchase(26/- to 36/-)1d. for each complete month. |
||||
|
Third extension—10 years from 20th anniversary of purchase(36/- to 46/-)1d. for each complete month. |
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|
Fourth extension—19 years from 30th anniversary of purchase and indefinitely thereafter(46/- to 83/6 at end of 49th year)1d. for each complete month for first two years; 2d. for each complete month thereafter with bonus of 1/6 at end of 11th year. |
||||
|
Second |
April, 1931— May, 1933 |
16/- |
16/- to 24/- after 10 years |
First extension—12 years from 10th anniversary of period(24/- to 34/-)1d. for each complete period of two months of 1st year; 3d. for each complete period of four months of 2nd to 7th year, and 1d. for each complete month thereafter to end of period. |
|
Second extensions—10 years from 22nd anniversary of purchase and indefinitely thereafter(34/- to 48/- at end of 32nd year)1d. for each complete month for first six years; 2d. for each complete month thereafter. |
||||
|
Third |
July, 1933— May, 1946 |
16/- |
16/- to 23/- after 12 years |
First extension—13 years from 12th anniversary of purchase(23/- to 32/-)1d. for each complete period of two months of 1st year; 2d. for each complete period of three months of 2nd to 7th year; 3d. for each complete period of four months thereafter to end of period. |
|
Second extension—6 years from 25th anniversary of purchase(32/- to 40/-)3d. for each complete period of four months of 1st and 2nd years; 5d. for each complete period of four months of 3rd and 4th years; 6d. for each complete period of four months of 5th and 6th years. 3d. bonus at end of 5th year and 9d. bonus at end of 6th year. |
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|
Fourth |
July, 1946— April, 1952 |
16/- |
16/- to 21/- after 11 years |
First extension—5 years from 11th anniversary of purchase(21/- to 25/6)2d. for each complete period of four months of 1st and 2nd years; 3d. for each complete period of four months of 3rd year; 3d. for each complete period of three months of 4th and 5th years. 9d. bonus at end of period. |
(a) According as the various issues of savings certificates approach their maturity date, it is the practice to extend their life and to fix new interest accretions for the extension periods based generally on the current interest rates.
The interest is compounded in the sense that in appointing the accretions for each extension period, regard is had to the value of the certificate at the beginning of the period inclusive of all previous interest.