If you want to deposit your savings for a short period without taking risks, an excellent solution is represented by the 4-year Plus postal savings bonds which, as can be seen from the name, last only 4 years. These products are issued by Cassa Depositi e Prestiti, distributed by Poste Italiane and enjoy the guarantee of the Italian State. Let’s see how they work and what interest rates they offer.
Duration and performance
The 4-year Plus postal savings bonds, as mentioned, last 4 years. They recognize a fixed return at the end of the fourth year of 1.50% gross per annum. The strong point of these securities is that they can be subscribed to by everyone and not just by those who bring new liquidity, for example, as in the case of 4-year Premium postal savings bonds, or who have requested the reimbursement of old securities.
An example of performance
Here is an example of return with 4,500 euros.
Assuming you want to invest 4,500 euros in the 4-year Plus postal savings bonds, at the end of the fourth year, as can be seen from the calculator made available by Poste, you will receive a net refund of 4,741.82 euros. However, stamp duty is excluded from this calculation, which is calculated based on current legislation.
How to subscribe to Bfp
They can be jointly registered with up to a maximum of four adult natural persons. Joint registration is not permitted between minors and adults or between minors.
These postal savings bonds can be purchased both in
- paper form
- dematerialized form.
In the first case you receive a paper document that must be jealously guarded. The reason is that it will then be used to request a refund.
In the second case, however, you receive nothing, as they are represented by an accounting entry made on a settlement account which can be a BancoPosta current account or a postal savings book. If you choose the dematerialized form, the security must have the same name as the relevant settlement account, which cannot be closed as long as there are outstanding vouchers. The reason is that at the time of reimbursement, whether at maturity or in advance, the accrued amount is credited to it.
What is the refund method
If you subscribe to paper vouchers, the reimbursement occurs in full in a single payment at any time as long as it is within the limitation period and without additional costs. If you have dematerialized vouchers, however, you can decide at any time whether to request a refund in a single or partial solution for amounts equal to 50 euros or multiples.
If the reimbursement is requested before 4 years, however, only the amount invested is recognized and not the interest accrued, for which, as already mentioned, one must wait until the end of the fourth year.
How BFP is issued
Postal savings bonds are issued daily based on savers’ requests. It is therefore the so-called tap system: there is no pre-established fixed limit. The purchase price is always equal to the face value and there is no additional cost at the time of subscription.
They can be purchased starting from 50 euros and multiples up to a maximum of 1,000,000 euros by a single person on the same working day:
- from the app and web if you have a Smart passbook or a BancoPosta account enabled for online device services by connecting to the official website or logging in from the Poste Italiane application;
- at post offices, bringing with you your valid identity document and tax code.
If you decide to go to the post office, you can book the appointment to save precious time using the app or by connecting to the website in the “book an appointment at the post office” section.
Expiry and prescription
The 4-year Plus postal savings certificate expires at the end of 4 years and the limitation period begins from that date. On paper bonds the expiry date is usually shown on the front of the vouchers. As regards dematerialized products, it can be checked by accessing your reserved area from the app or by connecting to the official company page.
Alternatively, it is also possible to request this information from post offices where operators can verify the data associated with the voucher.
After 10 years from expiry, they become statute barred. If this happens you lose the right to reimbursement of the invested capital and interest. The unclaimed securities are in fact transferred to the dormant relations fund managed by the State.
How much do postal vouchers cost
Buying a postal savings certificate, maintaining it and requesting a refund costs nothing. This aspect therefore makes it an ideal and accessible tool for those who want to invest small sums without spending anything at the beginning or at the end.
The only cost incurred concerns the duplicate in the event of loss or damage of the paper voucher, which is 1.55 euros for each voucher, regardless of the amount invested.
What taxes are applied on Bfp
As regards the tax aspect, however, a postal savings bond is one of the best savings tools.
The interests that accrue, in fact, are subject to a substitute tax of 12.50% foreseen by the legislative decree 239/1996. This is a lower rate than that applied to other financial products such as deposit accounts. Those who do not reside in Italy, however, do not pay this tax if specific conditions are met and this makes the vouchers even more advantageous internationally.
Another plus point of these securities is that they are exempt from inheritance tax. It means that if they are transferred to the heirs they will not be taxed.
However, there is stamp duty to be paid which obviously affects the overall value of the investment. Since 2012 it has been 0.20%, or 2 per thousand per year on the invested capital. It applies automatically at the time of reimbursement only if the total value of the voucher portfolio (i.e. all those you own) is greater than 5,000 euros.
Finally, vouchers, together with government bonds and postal savings books, are not considered in full in the movable assets for ISEE purposes up to 50,000 euros per family unit.
How to verify the existence of good registered names
If you are in doubt as to whether you have vouchers in your own name or in joint ownership, you can verify their presence by submitting a request at any post office.
However, the search is not free. In fact, you pay a commission that varies based on the number of post offices involved for the checks. The more generic the search, the greater the number of locations to consult, so the ideal would be to provide as much information as possible, such as the location of subscription or the indicative period.
