Savings Certificates (Issue 24) Rules 2023.

JurisdictionIreland
CitationIR SI 131/2023
Year2023

S.I. No.131of2023

Savings Certificates (Issue 24) Rules 2023

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) and pursuant to section 30 of the Finance Act, 1940 (No. 14 of 1940) and other legislation, hereby makes the following rules:

Citation and Commencement

1. (1) These Rules may be cited as the Savings Certificates (Issue 24) Rules 2023.

(2) These Rules shall come into operation on 26 March 2023.

Interpretation

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

“Issue 24” has the meaning given to it in Part 1 of the Schedule; and

“Savings Certificates” means any one or more certificates issued by or on behalf of the Minister for Finance, entitling the person named in such certificate or certificates as the holder to receive the purchase price of such certificate or certificates together with any interest due in respect of such certificate or certificates.

(2) These Rules refer to Issue 24 only and all references to Savings Certificates in these Rules shall be construed as references to Issue 24.

Issue 24

3. (1) Subject to paragraph (2) of this Rule, the terms and conditions applicable to Issue 24 are as set out in the Schedule.

(2) Notwithstanding the references in Part 2 of the Schedule to “Products” and “State Savings Products”, defined therein to include savings products other than Savings Certificates, these Rules relate only to Savings Certificates.

(3) The Savings Certificates Rules 1926 shall not apply to Issue 24.

GIVEN under the Seal of the National Treasury Management Agency,

23 March, 2023.

FRANK O’CONNOR,

Chief Executive.

DAVE McEVOY,

Director.

SCHEDULE

PART 1 – SAVINGS CERTIFICATES SPECIFIC CONDITIONS

Application and Interpretation

Unless otherwise defined herein, capitalised terms used in these terms and conditions relating to Savings Certificates (the “

Savings Certificates Conditions

”) shall have the meanings ascribed to them in the General Terms and Conditions.

In the event of a conflict or ambiguity arising between the General Terms and Conditions and the Savings Certificates Conditions, the Savings Certificates Conditions shall prevail.

These Savings Certificates Conditions apply to Issue 24 only and are effective as and from Sunday, 26 March 2023.

In these Savings Certificates Conditions:

Interest

” shall have the meaning set out in condition 2 below.

Issue 24

” means the issue of Savings Certificates issued on or after Sunday, 26 March 2023 and available for purchase until such time as the Minister for Finance, acting through the NTMA, determines.

Maturity Date

” means the date that is five years from the Registration Date.

” means the period commencing on the Registration Date and ending on the day before the Maturity Date.

Minimum and Maximum Holdings in Issue 24

1.1 The minimum permitted holding in Issue 24 at any time is €50.

1.2 Subject to condition 1.4, an individual may purchase Savings Certificates in Issue 24 up to an aggregate value of €120,000, regardless of whether such individual holds the Savings Certificates as a sole Holder or a Joint Holder.

1.3 There is no limit on Savings Certificates in Issue 24 that are held as a result of:

(a) transfers to you in accordance with condition 17 (Death of a Holder) of the General Terms and Conditions; and/or

(b) investment by you of proceeds on the maturity of your other Products.

1.4 For the purposes of calculating any individual’s aggregate maximum holding in Issue 24, any Savings Certificates held in accordance with condition 1.3 will be added to any Savings Certificates in Issue 24 already purchased. If this calculation causes an individual to reach or exceed his or her limit, no further applications to purchase Savings Certificates in Issue 24 may be made.

1.5 For the purposes of calculating a Joint Holder’s aggregate maximum holding in Issue 24, the Principal Amount of a Savings Certificate held jointly will be deemed to be owned in equal proportion by each Joint Holder and will be divided equally between each of the Joint Holders.

1.6 For the purposes of calculating any individual’s aggregate maximum holding in Issue 24, any Savings Certificates held by a charity, unincorporated body or friendly society in which such individual has an involvement will not be taken into account and will only be included in calculating the maximum holding limit for that charity, unincorporated body or friendly society.

Payment of Interest

2.1 Interest will be payable on Savings Certificates (“

Interest

”), in accordance with this condition, on the earlier of:

(a) the Maturity Date, or

(b) the date of Early Redemption.

2.2 Where held until the end of the Term, the total amount of Interest payable to you will be 5% of the Principal Amount as at the Maturity Date.

2.3 Where Savings Certificates are redeemed (in whole or in part) prior to the first anniversary of the Registration Date, the Interest payable to you will be calculated at a rate of 0.00% per annum on the portion of the Principal Amount being redeemed for the number of days from (and including) the Registration Date to (but excluding) the date of Early Redemption.

2.4 Where Savings Certificates are redeemed (in whole or in part) on or after any anniversary of the Registration Date, the Interest payable to you will be the sum of:

(i) the amount calculated by applying to the portion of the Principal Amount being redeemed, the Total Cumulative Interest Percentage indicated in Table 1 below for the most recent anniversary of the Registration Date, and

(ii) an amount calculated at a rate of 0.00% per annum on the portion of the Principal Amount being redeemed for the number of days (if any) from (and including) the date of the most recent anniversary of the Registration Date to (but excluding) the date of Early Redemption.

Table 1

Anniversary of the Registration Date on or after which redemption occurs

Total Cumulative Interest Percentage

0.00%

0.50%

0.85%

1.90%

5.00%

Example of return (principal and interest) on €1,000 principal amount

€1,000.00

€1,005.00

€1,008.50

€1,019.00

€1,050.00

EXAMPLE

– If a Savings Certificate has a Principal Amount of €1,000, and is redeemed in whole after 2 years and 160 days, the Interest payable is: €5 (applying the Total Cumulative Interest Percentage of 0.50% due on the 2nd anniversary of the Registration Date); and €0.00 (applying the annual rate of 0.00% to the 160 days from the 2nd anniversary of the Registration Date to (but excluding) the date of Early Redemption), giving total Interest payable of €5.00 and a total return (Principal Amount and Interest) of €1,005.00.

Notification of Maturity Date

3.1 At least 10 Business Days in advance of the Maturity Date we will contact you in writing:

(a) to notify you of the Maturity Date and the total amount payable to you; and

(b) to request your instructions on the payment of such amount.

3.2 We will continue to hold the total amount payable to you until such instructions are received. You should note that no Interest or other amount shall accrue in respect of Savings Certificates in Issue 24 on or after the Maturity Date.

Taxation

4.1 The Interest is not subject to Deposit Interest Retention Tax, and is exempt from Income Tax, Pay Related Social Insurance and the Universal Social Charge. Savings Certificates in Issue 24 are exempt from Capital Gains Tax in Ireland.

4.2 You may have other tax liabilities depending on your specific circumstances. We would therefore recommend that you consult your Tax Adviser.

PART 2 – GENERAL TERMS AND CONDITIONS

Definitions

Throughout the text of these General Terms and Conditions and the Specific Conditions, certain words and expressions have a specific meaning wherever they appear and these words and expressions have the following meanings:

‘Address’

the postal address last provided by you to us, including any changes of address notified by you to us under condition 20.5.

‘Agent’

a duly authorised person or body acting on behalf of the NTMA.

‘Agreement’

these General Terms and Conditions, the Specific Conditions and all other documents that otherwise become part of our agreement with you.

‘An Post’

An Post, acting as an Agent for State Savings Products on behalf of the NTMA.

‘Application Form’

the application form or application process for the applicable Product.

‘Business Day’

Mondays to Fridays, excluding public holidays in Ireland.

‘condition’

in relation to these General Terms and Conditions, means any rule or condition.

‘Customer Service’

our customer service in respect of the State Savings Products, which can be reached by telephone 0818 20 50 60 /01 705 7200, by post at State Savings, GPO, FREEPOST, Dublin 1, D01 F5P2, or by email at Service@StateSavings.ie or as otherwise posted on www.StateSavings.ie from time to time.

‘Early Redemption’

redemption of a Product prior to its Maturity Date whether in whole or in part.

‘General Terms and Conditions’

the terms and conditions set out in this document, comprising the rules, conditions and/or scheme applicable to the Products.

‘Holder’

has the meaning given to it below in the definition of ‘You’, ‘you’, ‘your’ or the ‘Holder’.

‘Joint Applicants’

individuals applying to jointly purchase a Product together. They will be joint owners of the Product.

‘Joint Holders’

Joint Applicants who purchase a Product and hold such Product as joint owners.

‘Maturity Date’

the date on which a Product matures, as set out in the Specific Conditions.

‘Minor’

an individual under the age of 18 years.

‘nominated parent or guardian’

has the meaning given to it in condition...

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