Solidarity bond nets €200m

MORE than €200 million has been invested in the Government’s National Solidarity Bond, with an average of €11m pumped in every week.

The success of the savings scheme, which was launched at the beginning of May, has been instant, with the total invested jumping from €70m in early July to €200m in just two months.

Under the scheme, members of the public can invest anything between €500 and €250,000 and will earn 1% interest each year and bonuses of up to 50% if they leave their money in the scheme for five, seven or 10 years.

The bond is being run by the NTMA and sold via An Post.

More than 9,000 investors have been attracted to date, putting in about €2m per day. That equates to an average investment of €23,000 per person.

The success of the scheme is being put down to the continuing lack of confidence in the banks.

“People are definitely saving more and are taking more care when choosing where to make their deposits. That said, there are initiatives out there which are being marketed better and options which offer better deposit return rates, so the popularity of the bond can’t be attributed to those things but it could be a psychological thing, to some extent.

“They’ve seen so-called safe banks, like Bank of Scotland, leave the country and read the differing opinions over how healthy the credit unions are and they’re basically asking ‘where is my money actually safe?’ and coming to the conclusion that they don’t want all their funds deposited in the banks,” said Frank Conway, director of the Irish Mortgage Corporation.


Lifestyle

ACCLAIMED filmmaker Damian O’Callaghan is well used to creating cinematic magic on screen.Wedding of the Week: Filmmaker Damian meets his real-life leading lady

From age 6, I was on stage. I started with school plays but it never occurred to me that it would become my job.This much I know with writer and performer Joanne Ryan

I’m 30 and have been with my boyfriend for nearly two years.Sex Advice with Suzi Godson: I can't help him to climax...

For the interiors lover who can’t resist a New Year’s revamp or a simple freshening up, there are plenty of new books on the shelves to inspire, writes Carol O’CallaghanFour new books to inspire your interiors renovation

More From The Irish Examiner