John Cregan (Limerick West, Fianna Fail)
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Question 134: To ask the Minister for Finance his views on amending the present time limit of ten years applicable to the National Solidarity Bond to a period of two to three years with an option to continue with this investment. [42551/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In Budget 2010, I announced the Government's intention to launch a National Solidarity Bond, the purpose of which is to allow citizens an opportunity to invest and provide money to the State to stimulate economic recovery and to assist in the maintenance and creation of employment. The necessary legislative basis was provided in this year's Finance Act and the Bond was launched on Tuesday 4 May.

The National Solidarity Bond is one of the State Savings products which are managed by the National Treasury Management Agency and are designed primarily for the retail investor. The National Solidarity Bond is designed as a ten-year product. It complements the existing savings bonds and savings certificates, which are shorter-term products for three and five-and-a-half years respectively. The other State Savings products are Instalment Savings and Prize Bonds.

I might add that it is possible to encash National Solidarity Bonds at any time but, as is the normal practice with longer-term investment products, the interest rate is structured so as to encourage investors to leave their money in the Bond as long as possible.