Enda Kenny
Question:170 Mr. Kenny asked the Minister for Finance if he will consider extending the special savings scheme introduced in 1996 for a further period; and if he will make a statement on the matter. [29492/01]
Written Answers. - Special Savings Scheme.
It is assumed the Deputy is referring to the 13th issue savings certificates, a scheme which started in 1996 and matured in August of this year. On maturity, the scheme was closed and investors were given the opportunity either to encash their investment or to reinvest their money in the current, 16th, issue of savings certificates. These savings schemes are operated on my behalf by the National Treasury Management Agency through An Post.
It is not considered appropriate to extend the conditions of any given savings scheme beyond the date of maturity, as the criteria for a savings scheme are set in the context of the prevailing interest rate climate. As such, the interest rates applying to the 1996 scheme were higher than those currently available. Since moneys invested in such savings schemes constitute a part of the national debt, extension of a scheme to which high interest rates apply would increase the cost of debt service. The investor still has the option, however, of reinvesting their money in another scheme or savings product, or of setting up a special savings incentive account through any of the many financial institutions which offer the accounts.