Post Italian has recently decided to increase returns on some of its products Postal Savings Bond, allows them to reach 6% gross annual return. This change specifically applies to Postal Savings Bonds for minors. It is important to note that only adults have the opportunity to subscribe to these vouchers on behalf of minors, which will see increased rates of returns Till reaching the age of majority, i.e. 18 years.
What are Postal Savings Bonds?
To fully understand what these financial instruments are and how they work, we need to examine their nature closely. Postal Savings Bonds are guaranteed by the state through issuance by the Casa Depositi e Prestiti (CDP). These financial instruments provide opportunities to investors Allocate a nominal amount without facing reimbursement costs, excluding tax fees, Unlike BTPs (multi-year treasury bonds), postal savings bonds are not issued by banks, but directly by Poste Italiana.
In Italy, postal savings bonds represent a A widely used financial instrument, with a total value of 191.5 billion euros. It is interesting to note that excluding the real estate sector, 6% of household wealth is invested in postal savings, which includes not only savings bonds but also passbooks, totaling 90.5 billion euros.
why do they grow
Increasing the yields of postal savings bonds represents a key strategy for Post Italian, driven by several objectives:
- Improving Competitiveness: In a financial market with many investment options, increased returns give savings bonds a greater level of competitiveness. It can attract investors by offering a more interesting prospect than other options in the market.
- Responding to market needs: In times of economic uncertainty, investors look for options that offer safety along with attractive returns. The increase in Postal Savings Bond yields is a direct response to this growing demand from investors, providing them with a solution that combines safety and profit.
- Encourage long term investment: Due to higher yields, savings bonds become more attractive to those who want to invest for the long term. This strategy may encourage investors to consider Postal Savings Bonds as a preferred option for building long-term portfolios, thereby helping to stabilize and strengthen the customer base in the long term.
Advantages and Disadvantages of Savings Bonds
Subscribing to postal interest bearing bonds offers various benefits to investors. between these, Include a preferential tax rate of 12.5%, Option to request reimbursement and exemption from inheritance tax within the statute of limitations. To proceed with the subscription, you can follow an electronic process.
It is important to note that the maximum amount of vouchers that can be held by one person in one or more post offices in a single working day is one million euros. The purpose of this limit is to regulate the quantity of vouchers that an investor can subscribe for in a single day.
As far as paper vouchers are concerned, they can be subscribed for and redeemed at all post offices. This flexibility facilitates investors to manage their transactions in an efficient and accessible manner, ensuring comprehensive coverage across the region.
how to sign up
Postal Savings Bonds can be certified as either Through paper documentation or through accounting records, Known as “Dematerialized Voucher”. In case of dematerialized vouchers, ownership of a postal current account or postal savings book is required in which placement, management and reimbursement operations are recorded.
Unlike multi-year treasury bonds (BTPs), investing in postal interest bonds offers the possibility of recovering the invested capital at any time, without being subject to fluctuations in the bond market. This flexibility is particularly beneficial for investors who prioritize investment security and liquidity.
For investors with a greater appetite for risk, The option to sell BTP at a profit by taking advantage of market volatility may be more interesting. However, by selling an interest-bearing postal bond early, the investor gives up accumulated returns. It is important to note that there are variants of BFPs, such as 3X2, which allow early liquidation after 3 years without sacrificing the interest earned, thus providing an intermediate solution for those looking for full returns. Want a little flexibility without having to leave?
What types of Postal Savings Bonds are available?
The main types of postal savings bonds available include:
- Voucher more than 4 years This type of voucher is ideal for those planning medium term investments. It has a tenure of 4 years, a gross yield of 3% per annum on maturity and offers the facility of prompt repayment at any time.
- buono 3×2 3×2 Coupons is an excellent option for investors interested in the medium to long term. With a tenure of up to 6 years, it guarantees gross annual returns of 3% on maturity, with the possibility of flexible repayment after 3 years and recognition of interest earned.
- coupon renewal Dedicated to those who wish to reinvest their expired vouchers from 1 August 2023, the renewal voucher tenure is up to 6 years, offering a slightly higher interest rate, a gross annual yield of 3.25% on expiry.
- Perpetual Savings Voucher For those looking for ethical and sustainable investments, the Sustainable Savings Bond has a tenure of 7 years, a fixed return of 2.50% and the possibility of receiving a bonus linked to the STOXX Europe 600 ESG-X Index at maturity.
- buono 3×4 Suitable for those with a long investment horizon, the tenure of the 3×4 voucher is up to 12 years, gross annual return of 3.25% on maturity, with repayment options possible after 3, 6 and 9 years.
- ordinary good With a maximum term of 20 years, the Simple Voucher is ideal for those who want to set aside long-term savings. It offers a gross yield of 3.5% per annum on maturity and the flexibility of repayment at any time.
- 4 Year Ordinary Savings Voucher Linked to the Simple Savings Plan, this voucher has a tenure of 4 years and a standard return of 1.5% gross per annum on maturity, representing an option for those who already have a short-term commitment following a periodic savings plan. Are in search.
- Voucher dedicated to minors With a gross annual yield of 6%, this voucher is designed for long-term investment for minors. It can be subscribed for by adults like parents or grandparents, offering very advantageous interest rates.
- good solution legacy With a tenure of 4 years, the Inheritance Solution Voucher offers a gross annual return of 3.25% on maturity, representing an interesting option for managing inheritance and wealth.