Formal launch of State savings scheme

Finance Minister Charlie McCreevy has formally launched a special government scheme to encourage saving.

The government is offering a 25% top up on net investment in the Special Savings Initiative (SSI), which will become available for one year from May.

Income or gains from the SSI will be taxed at 23%, which will be deducted at the end of five years, or if the investor pulls out early.

Investors must also put in a minimum of £200 per month.