NTMA wants cut in 40m An Post bill for bonds and savings certs services
The National Treasury Management Agency (NTMA) is seeking a 20pc cut in its 40m-a-year payments to An Post for handling savings certificates, bonds and regular deposits. The NTMA is responsible for managing the funds raised through these products on behalf of the Government, but An Post markets them and sells them in post offices. It charges its fellow State agency 2.75pc of the value of the transactions. This is more than the certificates and bonds pay in interest to savers, and many times the 0.1pc which ordinary depositors in An Post savings receive. It also compares with the 0.5pc charged by the international managers of the national pension fund. NTMA officials believe the fees are too high and are seeking an 8m reduction. A spokesman for An Post would say only that the matter was under discussion. An Post is likely to argue that there is considerable work involved in handling retail products such as these, where amounts are often small, and that the charges are justified.
Read More