SAVINGS:THE GOVERNMENT plans to establish a "national solidarity bond", a savings product aimed at small investors which will help fund investment plans in the Budget. The bond will "enable ordinary citizens to provide money to the State to stimulate economic recovery and create employment", Mr Lenihan said.
The Department of Finance said investors would be able to invest in the bond for periods of five, seven or 10 years, and interest would be paid annually.
Investors would be entitled to “a final redemption bonus” when their investment matures to encourage them to leave their funds invested for the full period.
The department is working on the bond with the State’s debt manager, the National Treasury Management Agency (NTMA), and details of it will be announced early in 2010. Individuals will be able to invest in the bond through lump sum payments and/or occasional payments. It will be sold by An Post on behalf of the NTMA via the internet, telephone and at local post offices.
