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Tuesday, 22 May 2012

Savings Certificates

Tax free investment, State guaranteed

A secure way to make a long term, lump sum investment. Savings Certificates offer a 21% tax-free State Guaranteed return after a period of five years and six months.

    

How can I invest in Savings Certificates?

    • Download an application form or pick one up at your local Post Office.
    • Decide how much you want to invest between €50 and €120,000. Joint account holders can invest up to a maximum of €240,000.
    • Hand in your completed application form and acceptable forms of identification with your investment amount at your local Post Office.  Alternatively post the form, cheque and acceptable forms of identification to:

      Inpayments Section
      Savings & Investments Services
      An Post
      Block 3D
      GPO
      Dublin 1

    • Leave your money invested for a period of up to five years and six months.

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    Which account is best for me?

        Account Options - 17th Issue Savings Certificates

    • Sole account - Individuals can invest between €50 & €120,000. Withdrawals require the signature of the account holder.
    • Joint account - Account can be held in two or more names. Account holders can invest between €50 & €240,000 and each party has equal rights to the investment. Withdrawals require the signatures of all parties.
    • Trust account - Trustees operate the account for the beneficiary (account holder). Withdrawals require the signatures of all parties.  If the beneficiary is a child under 7 years, withdrawals are not normally allowed. 
    • Society account - Nominated officers of the society operate the account on behalf of the society members. A minimum of two signatures are required for withdrawals.
    • Child account - A child account is opened if the account holder is a child under seven years of age. Withdrawals are not normally permitted until the child reaches seven years of age.

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    What are the Interest Rates?

    Investors will earn 21% TAX FREE over a 5 year and 6 month period.  This is equivalent to an average interest rate of 3.53% per annum if the investment is held for the full term.  Where Savings Certificates are encashed before the elapse of 5 years and 6 months, the average annual rate of interest will be lower.  The following chart illustrates how an investment of €1,000 will grow over a five year and six month period.


     Investment Growth on €1,000 at 6 monthly intervals  
    After 6 Months  €1,010
    After 1 Year €1,021
    After 1 Year and 6 Months  €1,033
    After 2 Years  €1,046
    After 2 Years and 6 Months   €1,062
    After 3 Years €1,080
    After 3 Years and 6 Months  €1,100
    After 4 Years €1,122
    After 4 Years and 6 Months  €1,146
    After 5 Years €1,175
    After 5 Years and 6 Months €1,210

     

    • No interest will be paid if a repayment is made within the first six months.
    • If a repayment is made before five years and six months, the average annual rate of interest will be lower, especially in the early years.
    • Your investment is State Guaranteed and Tax Free.

    How often do I get a statement?

    Savings Certificate Statements

    • A valuation statement will be posted annually on the anniversary of the purchase date of the Saving Certificate.
    • Savings Certificate customers can also request a valuation statement by writing to :    

          
              Customer Administration 
              Savings & Investment Valuations
              An Post 
              Block 3D
              GPO
              Dublin 1

    • Valuation statements will only be posted to the address on the Savings Certificate.
    • If you have changed address, please see how to change an address on Savings & Investments for further information.

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    How to make a Withdrawal?


      To make a withdrawal or encash your Savings Certificate

    • Download a repayment application form or pick one up at your local Post Office.
    • Complete the repayment application form and hand it with your Savings Certificate into any Post Office or post them to:  

        
          Repayments Section
          Savings & Investment Services
          An Post 
          Block 3A
          GPO
          Dublin 1
           

    • Seven working days' notice is required for repayments from the date that the correctly completed form, together with the relevant Certificates, are received in Repayments Section, 3A, GPO, Dublin 1.
    • Partial repayments are calculated to include both principal and accrued interest.  It is not possible to repay interest only.
    • When your Savings Certificate is due to mature, An Post will write to you at your registered address outlining the options for reinvestment or repayment.
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      What else do I need to know?

      Terms and conditions

      Savings Certificates (Seventeenth Issue) Rules, 2007 
       

      WHEREAS

      1. Savings Certificates have been issued by or on behalf of the Minister for Finance and, prior to the coming into effect of the following Rules, there have been 16 issues of Savings Certificates;

      2. Each such issue of Savings Certificates has been issued pursuant to Savings Certificates Rules made under Section 30 of the Finance Act, 1940 and other legislation, and these Rules have provided that the provisions of the Savings Certificates Rules, 1926 (the "1926 Rules”), which referred to Savings Certificates of the first issue, shall with appropriate amendments apply to subsequent issues of Savings Certificates;

      3. It is intended to provide for Savings Certificates of the seventeenth issue by means of the following Rules; and

      4. The following Rules provide, by restatement with appropriate amendments, that certain provisions of the 1926 Rules shall also apply to Savings Certificates of the seventeenth issue.

      NOW THEREFORE
      The National Treasury Management Agency, in exercise of the powers conferred on it by the National Treasury Management Agency Act, 1990 (No. 18 of 1990) and the National Treasury Management Agency Act, 1990 (Delegation of and Declaration as to Functions) Order, 1990 (S.I. No. 277 of 1990), hereby makes the following Rules:

      1. Citation & Commencement

          (1)  These Rules may be cited as the Savings Certificates (Seventeenth Issue)
                Rules 2007.

          (2)  These Rules shall be deemed to have effect from the 1st day of August 2007.
          

      2. Interpretation

          (1)  In these Rules, unless the context otherwise requires:

               "charity" means any body of persons or trust established for charitable
                purposes only, recognised as such by the Revenue Commissioners of Ireland;

               "inherited Savings Certificates" means Savings Certificates to which a person
               becomes entitled, or in which he or she has acquired an interest, on the death
               of any other person;

               "purchase price" means the principal amount paid by a purchaser of Savings
               Certificates and recorded for this purpose on the face of the relevant Savings 
               Certificates;

               "Savings Certificates" means any one or more certificates issued by or on
               behalf of the Minister for Finance, entitling the person named in such Savings
               Certificates as holder (hereafter referred to as the "holder") to receive the
               Purchase Price of such Savings Certificates together with any interest due in
               respect of the Savings Certificates (together referred to as the "amount
               repayable");

               "seventeenth issue” means the issue of Savings Certificates which was first
               issued by the Minister for Finance, acting through the National Treasury
               Management Agency, pursuant to the National Treasury Management Agency
               Act, 1990 (No. 18 of 1990) and first issued on the 1st day of August, 2007.


               "specified securities" means:

              (a)  Savings Certificates of the seventeenth or any previous issue;

              (b)  Savings Bonds duly issued under section 54 of the Finance Act 1970; and

              (c)  instalement savings schemes within the meaning of section 53 of the
                    Finance Act 1970;  

          (2)  These Rules refer to Savings Certificates of the seventeenth issue and all
                references to Savings Certificates herein shall be construed as references to
                Savings Certificates of the seventeenth issue.

      3. Purchase Price

          Subject to the provisions of Rule 8, Savings Certificates may be purchased in
          any amount equal to or greater than €50.

      4. Application to purchase Savings Certificates

          Application to purchase Savings Certificates may be made to An Post or to such 
          other agents as may from time to time be authorised by the National Treasury
          Management Agency by the completion of such application forms as may be 
          prescribed from time to time.

      5. Persons entitled to purchase Savings Certificates

          (1)  Savings Certificates may be purchased by:


               (a)  an individual aged 7 years or more;

               (b)  any number of such individuals jointly; or

               (c)  a Charity.


          (2)  Savings Certificates may be purchased as a gift for an individual of any age, or 
                for any number of such individuals jointly, and Savings Certificates purchased
                as a gift shall be held in the name of the individual or individuals for whom it 
                has been purchased.

          (3)  Notwithstanding paragraph (1) of this Rule, the following may purchase Savings
                Certificates provided the written permission of An Post has been granted in
                advance of such purchase:


              (a)  a corporation or company; or

              (b)  a partnership, club, society or other unincorporated body or Friendly 
                   Society.


          (4)(a)  Savings Certificates may be purchased on behalf of and in the name of a
                    child under seven years of age and may be held by such child accordingly.

              (b)  The person who applies for the purchase of Savings Certificates on behalf of
                    and in the name of a child under seven years of age shall specify, in such
                    manner as may be prescribed by An Post, the date of birth of such child 
                    and such other particulars as may be required by An Post.

              (c)  At any time after such child attains the age of seven years he or she shall,
                    when required by An Post, furnish his or her signature in such manner as 
                    may be required by An Post.
         
          (5)  Savings Certificates may be purchased on behalf of and in the name of a 
                person of unsound mind by the committee of such person's estate or any
                person having legal authority to act in that behalf.
        
          (6)  Savings Certificates may be purchased in the name of a person as trustee for a
                beneficiary whose name shall also be entered on the Savings Certificates 
                provided that the purchase price of such Savings Certificates shall be taken
                into account in respect of such beneficiary in computing the maximum
                personal holding permitted by Rule 8 hereof.

       6. Period for which Savings Certificates may be held

          Savings Certificates may be held for a period not exceeding five years and six 
          months from the date of purchase thereof provided however that the National
          Treasury Management Agency may, whenever and so often as it thinks fit, in its 
          absolute discretion, extend or not extend the period for which Savings Certificates 
          may be held beyond the period referred to in this Rule.

      7.  Interest 

          (1)  The amount repayable at any time in respect of Savings Certificates shall be
                the Purchase Price of such Savings Certificates together with any interest due 
                from the date the Purchase Price shall have been received by An Post at the 
                respective rates set out below:
                                              
                         

      Period Held   Interest Rate 
      * if held for at least 6 months    0.10% 
      * if held for at least 1 year   2.1%
      * if held for at least 1 year and 6 months   3.3%
      * if held for at least 2 years   4.6%
      * if held for at least 2 years and 6 months   6.2%
      * if held for at least 3 years    8.0%
      * if held for at least 3 years and 6 months  10.0% 
      * if held for at least 4 years   12.2%
      * if held for at least 4 years and 6 months  14.6%
      * if held for at least 5 years  17.5%
      * if held for at least 5 years and 6 months   21.0%

          (2)   Interest is payable only in respect of each completed period of six months for
                which the Savings Certificates are held.  If Savings Certificates are encashed 
                prior to the completion of any interest period, then no interest is paid in respect
                of any period since the last completed interest period.

      8. Maximum Holding - See (Seventeenth Issue(Amendment) Rules 2007

          (1) No person shall at any time hold or have any interest in Savings
      Certificates 
               with
       an aggregate Purchase Price of more than €120,000 (the "maximum 
               personal holding”). 

          (2)  In the case of a joint holding of Savings Certificates by two or more persons, 
                such holding may include Savings Certificates of an aggregate Purchase Price
                of not more than €240,000 provided always that each holder shall not thereby
                exceed the maximum personal holding.

          (3) Inherited Savings Certificates shall not be taken into account for the purposes of
               this Rule except where the person holding such Savings Certificates purchases
               or seeks to purchase further Savings Certificates after the date of the
               inheritance.

          (4) If the holder of specified securities purchases a Savings Certificate in an 
              amount equal to or less than the amount repayable in respect of such specified 
              securities and the purchase is made with effect from the date of the expiry of the
              period for which the specified securities in question may be held as prescribed 
              by the National Treasury Management Agency (the"expiry date"), the Savings 
              Certificate so purchased shall not be taken into account for the purpose of this
              Rule except where the person holding such Savings Certificate purchases or 
              seeks to purchase further Savings Certificates after the expiry date.

      9. Evidence of Identity 

          (1)  An Post shall not be obliged to enquire as to whether the holder of Savings
               Certificates holds the Savings Certificates in the capacity of trustee or agent or 
               otherwise in a fiduciary capacity for any other party.

          (2)  Nothing in paragraph (1) of this Rule shall prejudice the right of An Post to
               require evidence to be given to its satisfaction of the identity of any person or of 
               the title of any person to any Savings Certificates or money or of any matter
               relating to Savings Certificates on which the due exercise of its powers or 
               performance of its duties depends and An Post may, for the purpose of 
               obtaining any such evidence, require a statutory declaration to be made by any
               person.

      10. Repayment

          (1)  Subject to the provisions of these Rules, any person wishing to obtain payment
                of the amount repayable in respect of Savings Certificates shall make 
               application for repayment using the form prescribed by An Post and such 
               application should be made at least seven business days before repayment is
               required. In the case of an application for the repayment of the amount 
               repayable in respect of Savings Certificates held in the joint names of two or 
               more persons, such application shall be made by all such persons or by the 
               survivors or survivor among such persons. An application for payment of money 
               repayable in respect of any Savings Certificates in the name of a friendly
               society or in the name of a charity shall be made by the person for the time
               being recognised by An Post as entitled to call for the repayment of such 
               money.

          (2)  A holder of Savings Certificates may encash in whole or in part such Savings 
               Certificates provided that, where the Savings Certificates are being encashed in 
               part, the minimum principal amount to be paid will be €100 or the value of the 
               Savings Certificates whichever is the lesser. Where the principal amount of the
               Savings Certificates remaining following such repayment would be less than 
               €100 then the Savings Certificates must be encashed in whole.

          (3)  An Post may pay the whole or any part of the amount payable in respect 
               of any Savings Certificates without the production of the Savings Certificates 
               where it is satisfied that the applicant is entitled to receive such sum.

          (4)  An Post may pay the whole or any part of the amount repayable in respect of 
               Savings Certificates to a third party provided it is instructed in writing to do so 
               by the holder.

      11.Transferability

          (1)  A Savings Certificate or its benefits may not be assigned or otherwise 
                transferred save as provided in paragraph (2) of this Rule.

          (2)  Subject to Rule 15 hereof, Savings Certificates held by a deceased holder may
                be transferred to a third party who is legally entitled to the proceeds.

      12. Loss or partial destruction of Savings Certificates

          (1)  If Savings Certificates are lost, a holder may apply for replacement Savings 
               Certificates to An Post stating the circumstances of such loss and An Post 
               may issue replacement Savings Certificates provided it is satisfied that 
               the loss is bona fide.

          (2)  If any Savings Certificates have been tampered with or are in such a condition 
               as to render the issue of new Savings Certificates desirable, An Post may, if it 
               thinks fit, require a surrender and cancellation of the old Savings Certificates 
               and issue new Savings Certificates to the holder.

      13.Application for payment of Savings Certificates where the holder is a child

          (1)  In the case of Savings Certificates held by a child aged 7 years or more, but 
               less than 18 years, application for payment of the amount repayable in respect
               of the Savings Certificates may be made by such child provided that An Post 
               may in its absolute discretion require proof that the consent of the parents or 
               legal guardians of such person has been obtained. Any authority signed by a 
               child of the age of seven years or upwards shall be as valid and binding on him
               or her in all respects as if, being of full age, he or she had signed such 
               authority.

          (2)  In the case of Savings Certificates held by a child aged less than 7 years, 
               application for payment of the sum repayable in respect of the Savings 
               Certificates may only be made by the parents or legal guardians of such child.

      14. Insolvency, mental disorder or other lack of capacity 

           If the holder of Savings Certificates is under a legal disability for any reason, 
           including but without limitation:

          (a) any holder in respect of which an assignee in bankruptcy,receiver,
               liquidator, administrator, examiner or other party lawfully entitled to deal with 
               the assets of a holder in the event of insolvency has been appointed;

          (b) any holder who is a person of unsound mind and whose affairs are 
               administered by a committee, attorney or other person having legal authority to
               act in that behalf;

          (c) any holder whose affairs are administered by a parent, legal guardian or other 
              lawfully appointed person by reason of such holder being a minor or  
              otherwise;

      then, anything which is required to be done by or to such holder shall or may be done by or to any of the persons (other than the holder) referred in (a), (b), and (c) the above, as appropriate, or any other person having power in law to administer the holder's assets and An Post may pay the whole or any part of the amount repayable in respect of the Savings Certificates to any such person.


      15. Arrangements on the death of a holder

          (1) Upon either:

              (a)  an application for payment of the amount repayable; or

              (b)  a request for transfer of Savings Certificates 

              following the death of the holder (or, in the case of the joint holding of Savings
              Certificates, the death of all of the holders), An Post shall pay the amount 
              repayable or, as appropriate, effect a transfer of the Savings Certificates in 
              accordance with written instructions of the deceased holder's executor or the 
              last surviving holder's executor in the case of a joint holding of Savings 
              Certificates or, as the case may be, the person having the lawful authority to act
              in the administration of the estate of such deceased holder.

          (2) Where a holder of Savings Certificates (being a sole holder) dies and the 
               amount repayable to such holder in respect of all Savings Certificates held by 
               such holder does not exceed €10,000 and probate of the will of such holder is
               not, or letters of administration to such holder's estate are not, produced within
               such time as An Post thinks reasonable, An Post may, without requiring such 
               probate or letters of administration in its discretion, pay the amount repayable 
               in respect of such Savings Certificates or any part of such amount to the 
               person who has, in the opinion of An Post, established a valid claim to the said 
               amount.

          (3) Nominations with respect to Savings Certificates issued under these Rules are 
               not permitted and accordingly any nominations made during the lifetime of the
               holder which nominate or purport to nominate another person or persons to 
               receive any amount repayable in respect of such Savings Certificates shall not 
               be acted upon by An Post.

      16.Savers


          (1)  Neither the National Treasury Management Agency nor An Post shall be liable
                in respect of any payment made or act done in good faith under these Rules, 
                and any such payment or act done shall be deemed to have been a valid 
                payment or act and shall constitute a full discharge of the liability of the 
                National Treasury Management Agency or An Post to make such payment or
                to perform such act.

          (2)  The posting by An Post of any documents (including Savings Certificates) or 
                notification addressed to the holder of Savings Certificates at the last address
                furnished by the holder for the purpose of receiving such documents or 
                notification shall constitute good delivery of the document or notification to 
                such holder.

          (3)  Nothing in this Rule shall operate to prevent the recovery by any person or his
                or her lawful representative of any money lawfully due to such person from the 
                party to whom that money was paid or affect the right which any person or any
                such representative may have against a third party in respect of Savings 
                Certificates.

      17.Non-Disclosure 

          (1)  The name or names of the holder of Savings Certificates, the number of
                Savings Certificates held by the holder and the amounts paid or payable in 
                respect of Savings Certificates shall not be disclosed, save:


              (a)  to such holder, or to a person authorised in that behalf by the said holder; 

              (b)  to an officer of either An Post or the National Treasury Management Agency
                    who is engaged in the management of Savings Certificates;

              (c)  to the parents or legal guardians of the holder where such holder is under 
                    the age of 7 years or, at the discretion of An Post, if the circumstances so
                    warrant, to the parents or legal guardians of the holder where such holder is 
                    aged 7 years or more, but less than 18 years;

              (d)  where the circumstances so require, to a person or persons to whom An
                    Post has the right to pay the sum repayable in respect of the Savings 
                    Certificates; or 

              (e)  as required by law.

          (2)  An Post may disclose to any person or to such person's lawful representative
               seeking in good faith to recover any money lawfully due to him from a party to 
               whom that money was paid, the name and address of such party and may,
               subject to any applicable laws, render to the first-mentioned person or to such
               person's lawful representative such further information or assistance as may, in 
               the opinion of An Post, be necessary to effect due recovery by the person to
               whom such money is lawfully due.

      18. Miscellaneous 
            No warrant or other order for the payment of money, no receipt or other
            acknowledgement for the receipt of money and no power of attorney or other 
            document in relation to the payment or receipt of amounts repayable in respect of
            Savings Certificates is liable to be charged with any Stamp Duty.


      Holders of Savings Certificates should notify An Post, Savings & Investments Services, Customer Administration, 3D, GPO, Dublin 1, of any change of permanent Address.

                                                                  National Treasury Management Agency
                                                                                                         1st August 2007

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      Savings Certificate Forms


      Adobe PDF iconSavings Certificates Application Forms
      Repayment form

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      Glossary of Terms