THE proposed new four-year solidarity bond announced by the government in the budget last week will carry the same terms as the existing 10-year bond.

The full details of the four-year bond will be announced by the NTMA in January. But it is expected to be priced at the same rate as its 10-year equivalent, which is returning an annual equivalent rate of 4.1% before Dirt.

The shorter duration is aimed at attracting savers who do not want to be locked in for a lengthy period.

The National Solidarity Bond is currently taking in about €11m a week from savers who are on average investing about €22,000 each. According to the NTMA about 500 customers every week are investing in the bond.

State savings schemes are seeing huge inflows as customers flee Irish banks because of fears over their health despite the government's deposit guarantee. The NTMA said earlier this year that €1.8bn had flowed into its coffers in 2009, the most of any year since it was set up in 1990. Some €9.3bn of deposits is held in savings funds run by the state.