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Dáil Éireann díospóireacht -
Tuesday, 20 Feb 1996

Vol. 461 No. 7

Written Answers. - An Post Savings Schemes.

Paul McGrath

Ceist:

124 Mr. McGrath asked the Minister for Finance the reason An Post suspended all further sales of savings certificate and savings bonds on Friday, 9 February 1995, apparently at the direction of his Department; and if he will make a statement on the matter. [3889/96]

An Post acts as agent of the National Treasury Management Agency (NTMA) in the day-to-day-operation of the savings certificates and savings bonds schemes.

The NTMA announced the closure of the then current issues of savings certificates and savings bonds on 9 February 1996, and they were withdrawn from sale with effect from close of business that day.
New issues of savings certificates and savings bonds were available for purchase from 14 February 1996. The new savings certificates offer a guaranteed return of 34.5 per cent tax-free after a period of five years and six months. This represents an avarage rate of interest of 5.54 per cent per annum. The new savings bonds offer a guaranteed return of 17 per cent tax-free after a period of three years, which represents an average rate of interest of 5.37 per cent per annum. The guaranteed rates of return for existing investors in savings certificates and savings bonds will not be affected by these changes.
The rates offered by the new issues are more in line with prevailing market rates.
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