The national bond is ‘not another SSIA’

THE first point to be made about the National Solidarity Bond is it is not another SSIA scheme to which the Government will contribute.

It is clear the level of interest paid will be the key reward for investors, with a back-up bonus for those who keep their investment running for the full term, which can be over a five, seven or 10-year term.

With interest rates likely to rise from their current historic lows the Government will have to put an offering on the table that will deal with that basic issue, said David Fennell, tax director at Ernst & Young.