Vol. 404 No. 4
115 Mr. Noonan (Limerick East) asked the Minister for Finance if his attention has been drawn to the fact that post office savings certificates have a lower net yield to standard rate taxpayers than investment in deposit accounts in building societies; if he plans to have a new issue of savings certificates with an enhanced yield; and if he will make a statement on the matter.
The return on savings certificates compares quite favourably with the rates available on ordinary deposit/share accounts of building societies generally when tax at the standard rate is deducted from the latter. Certain building society accounts offer money market related rates or premia on their ordinary deposit/share account rates and some of these offer to standard rate taxpayers net yields that are somewhat greater than that available from savings certificates. In such cases, however, comparison with savings certificates is made difficult because of differences in conditions, most notably, notices of withdrawal and minimum size of investment.
While the question of a new issue of savings certificates is kept under review by the National Treasury Management Agency, the Deputy will appreciate that, since savings certificates are competing with other savings products, it is not appropriate for me to speculate on any plans for a new issue.
