SSIAs - FAQs

1. How much is my SSIA worth?
2. How much money do I get into my hand?
3. What forms do I have to fill out?
4. What happens if I do not fill out the form?
5. Will the form be sent to me?
6. On maturity, how can I access my money?
7. What conditions, if any, exist about accessing my money?
8. Do I earn interest / growth on all of my savings?
9. Am I liable for tax? If so, how much?
10. If I reinvest, am I liable for tax?
11. Is the SSIA over?
12. Will the Government offer something else?
13. Am I liable for management fees? How much are they?
14. Can I leave the money in the same account until I make up my mind?
15. What future options will exist?

1. How much is my SSIA worth?

Multiply each payment by 1.25 and add all sixty payments, the total is your basic payout.  On top of this, your Financial/Insurance institution should have been paying you a rate of interest, which will add to your payout even further. This rate will depend on the Financial/Insurance institution and the type of account that you opened (fixed rate, variable rate, level of risk etc.).

2. How much money do I get into my hand?

Again, this depends on your level of savings. At maturity, assuming that you have abided by the terms and conditions and have not made any withdrawals, you will receive your total savings plus the 25% Government bonus plus the interest or growth due from your Financial/Insurance institution.

3. What forms do I have to fill out?

Revenue require that you fill in a SSIA4 form prior to the maturity of your account. This form is a declaration stating that you have abided by the rules governing your SSIA.

4. What happens if I do not fill out the form?

Failure to fill out and return the SSIA4 form may lead to a penalty tax of 23% being applied to the total gross value of your account or fund. In effect, you will loose all bonuses that you may have received on the account since commencement.

5. Will the form be sent to me?

Your Financial/Insurance Institution will send you this form in adequate time for you to fill it in and return it.  The difficulty arises if you have moved address and not notified your product provider.  If you have moved address you should check with your product provider to ensure that they have your correct contact details.

6. On maturity, how can I access my money?

If you are a deposit SSIA holder your money will be available to you in a demand deposit account. You can withdraw your money at anytime. If you are an equity SSIA holder you should talk to your financial advisor for advice as to what will happen in your individual case.

7. What conditions, if any, exist about accessing my money?

Once you have filled out your SSIA4 declaration form, there are no conditions about accessing your money.

8. Do I earn interest / growth on all of my savings?

This depends on which type of account that you have with your Financial/Insurance institution. The Government top up is added to your account at the end of each month. You should talk to your product provider for confirmation of the interest rate or growth you have received on your individual account.

9. Am I liable for tax? If so, how much?

Provided you have abided by the terms and conditions of the SSIA scheme, you are not liable for tax on the Government top up portion of your savings. You are liable for maturity tax on the interest paid by your product provider. This is currently charged at 23%.

10. If I reinvest, am I liable for tax?

This really depends on what you decide to re-invest in, whether it is a deposit account, property or tracker bond, taxes may vary. You should ask your financial advisor for guidance.

11. Is the SSIA over?

To date there have been no announcements from the Government about future programs along the lines of the SSIA scheme.

12. Will the Government offer something else?

SSIA holders who are in the 20% tax bracket may invest up to €7,500 in a pension and the Government will add €1 for every €3 transferred from an eligble SSIA account into a Personal Retirement Savings Account (a PRSA), a Retirement Annuity Contract or an Additional Voluntary Contribution (an AVC), subject to a maximum bonus of €2,500. On top of that, the exit tax to be paid on the SSIA monies transferred into individuals pension accounts will be refunded. For full information on this you should contact Metropolitan Finance.

13. Am I liable for management fees? How much are they?

This will depend on the type of account that you hold with your financial institution. You should contact them for details.

14. Can I leave the money in the same account until I make up my mind?

Yes.

15. What future options will exist?

There are a range of options on the maturity of SSIA accounts. Contact Metropolitan Finance