The National Treasury Management Agency (NTMA) has announced details of the National Solidarity Bond. The bond, aimed at individual savers, was announced by Finance Minister Brian Lenihan in the December Budget.

The NTMA says the bond will pay an interest rate of 1% a year, with bonuses for those who leave the money in for five, seven and ten years. It will be available in all post offices from Tuesday May 4.

Any money invested in the bond is placed directly with the Irish Government under the management of the NTMA. The agency says the money is 100% secure.

The minimum individual investment is €500 but savers can accumulate that amount through regular lodgements of €25 or more. The maximum individual investment is €250,000 or €500,000 from two joint savers. There are no fees, charges or sales commissions attached to the bond.

The NTMA says savers can access their money at any time without penalty but the longer money is left invested the greater the return.

Savers who leave their money invested for at least five years will earn a bonus payment in addition to the annual interest rate payable on the bond. The maximum bonus payment will be earned by savers who leave their money invested for the full 10 years, earning a total gross return of 50% (47.5% net of DIRT tax at 25%).

Full details are to be made available on this evening.