CONSUMERS have pumped an average of €1.7m per day into the Government’s new fundraising initiative/savings scheme – the National Solidarity Bond – since its inception less than two months ago.
The scheme, which was initially proposed in last December’s budget, is aimed at raising additional funds for the Exchequer in order to “stimulate economic recovery” but also acts as a savings scheme for small investors.
Savers can invest anything between €500 and €250,000 in the scheme, which will pay 1% interest on an annual basis.
They also qualify for bonuses of up to 50% on the amount deposited if they leave their money in the scheme for five, seven or 10 years.
The latest figures from the National Treasury Management Agency (NTMA), which is operating the scheme, mean that more than €70m has been invested in the bond since the beginning of May.
Some €20m of that has been invested within the past three weeks and the pattern suggests that about 72 people are placing part of their savings into the project each working day.
The Government has said investors will be entitled to “a redemption bonus” when their investment matures.
The funds invested will also go towards providing the Government with additional money to “stimulate economic recovery and to assist in the creation of employment,” according to the Department of Finance.
A NTMA spokesperson declined to comment on the office’s hopes and outlook for the bond, yesterday.
However, it is understood that there is no set target for the full size of the fund.
Fianna Fáil Limerick representative Niall Collins said: “On the basis of the figures for the first eight weeks of the scheme, there is clearly a demand for this type of investment opportunity out there and there are a good number of people who have money saved.”
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