How much to invest in Postal Savings Bonds to receive 200 euros per month
Investing in Post Office Savings Bonds (BFP) for Monthly Income
Investing in Post Office Savings Bonds (BFP) is a highly appreciated choice for those seeking financial security and stability.
These instruments offer a fixed return and are backed by the State, making them ideal for those who want to avoid risks.
If you are wondering how much money to invest to receive 200 euros per month, it is important to know that BFPs do not pay monthly interest, but only at maturity or in the case of early redemption.
In this article, we will explore the available options and analyze which Savings Bond could offer you the best return to achieve a total profit equivalent to 200 euros per month.
This is just an example to help you understand how much to invest to achieve this goal.
Investment Options for Monthly Income
Imagine wanting to invest today and receive a stable income for the next four years.
The 4-Year Simple Savings Bond could be a good option.
This bond offers an annual gross return of 3.50% if you subscribe to at least 24 bonds in the same Savings Plan, compared to the standard return of 1.50%.
However, it is important to note that these BFPs do not pay monthly interest, but only at maturity, calculated on an annual basis with compound interest.
For example, to understand how much money is needed to receive 200 euros per month, let’s do an illustrative calculation.
Considering the net annual return, which after taxes (12.50% on the gross return and a stamp duty of 0.2%) is approximately 3.06%.
To get around 200 euros per month (around 2,400 euros per year) for 4 years, you need an initial capital of 78,400 euros.
The final value of the investment can be calculated using the compound interest formula:
\[ VF = P \times (1 + r)^t \]
where:
– P is the initial capital (78,400 euros)
– r is the net annual return (3.0625% or 0.030625)
– t is the investment duration in years (4 years)
Therefore, \( VF = 78,400 \times (1 + 0.030625)^4 \approx 78,400 \times 1.12771 \approx 88,469.34 \) euros.
The difference between the final value and the initial investment is 10,069.34 euros.
Understanding the Benefits of Post Office Savings Bonds
Investing in Post Office Savings Bonds (BFP) is a safe choice thanks to the guarantee of the Italian State, making them an ideal solution for those seeking stability and capital protection.
BFPs are free of subscription and redemption costs, except for taxes, and are suitable even for those with a limited budget.
BFPs can be subscribed to in both paper and dematerialized form.
Dematerialized form is particularly advantageous because it eliminates the risk of prescription, which occurs after ten years from maturity.
This prevents the loss of the invested capital and accrued interest.
The duration and returns of BFPs vary depending on the type of bond.
For example, the 4-Year Simple Savings Bond lasts four years and offers a gross return of up to 3.50% if subscribed to in the Simple Savings Plan.
Bonds for Minors offer increasing returns up to 6.00% with longer durations.
Poste Italiane provides two simulators on its website: one for Minor Bonds and one to simulate future returns.
These tools help calculate potential returns by entering specific investment data.
To subscribe to a BFP, you need to provide identification documents such as tax code, health card, and identity document.
Subscription can be made in cash or by check, and the bond is issued and delivered at the end of the transaction.
BFPs are exempt from inheritance tax and do not incur subscription or redemption costs, except for taxes.
Bonds up to 5,000 euros are exempt from stamp duty.
Furthermore, the 2024 Budget Law has excluded BFPs up to 50,000 euros from the calculation of movable assets for ISEE, pending implementing decrees.
Conclusion
Investing in Post Office Savings Bonds to achieve a monthly return, such as 200 euros, requires careful evaluation of the available options.
Both the 4-Year Simple Savings Bond and Bonds for Minors offer secure solutions guaranteed by the State, but with different characteristics.
Before investing, consider the duration, net return, and your financial needs.
With the right information and tools, you can make informed choices that balance security and returns, contributing to a balanced investment portfolio.
