NTMA announces new issues of State Savings products and changes to interest rates

16 December 2012 – The National Treasury Management Agency (NTMA) has today announced , which are available through An Post in any post office.

From today, savers can subscribe to:

  • A 3-year Savings Bond offering a 7% fixed-rate total return (AER1 2.28%)
  • A 4-year National Solidarity Bond2 offering a 12% fixed-rate total return (AER 2.87%)
  • A 5-year Savings Certificate offering a 15% fixed-rate total return (AER 2.83%)
  • A 6-year Instalment Savings product offering a 17% fixed-rate total return (AER 2.90%3)
  • A 10-year National Solidarity Bond2 offering a 45% fixed-rate total return (AER 3.79%)

The interest rates on these new issues represent a reduction of between 0.35% and 0.95% on the AERs that were available on the previous issue of these products.

The NTMA has also announced changes to interest rates on the Ordinary Deposit Account and Deposit Account Plus accounts. The Ordinary Deposit Account (Demand) will pay a variable rate of 0.25% AER, while the Deposit Account Plus (30-day notice) will pay a variable rate of 1% AER. Interest earned on these accounts is subject to DIRT at the prevailing rate.

With effect from the first Prize Bonds draw of 2013 (on Friday 4 January) the rate of interest used to determine the value of prizes in the weekly draw is 2.25% of total value of all prize bonds outstanding. There will continue to be a prize of €1 million awarded on the last draw of each month.

Existing savings

As the interest rates on the Ordinary Deposit Account and Deposit Account Plus are variable these rates will change with effect from 16 December 2012.

Savings Bonds, Savings Certificates, Instalment Savings, and National Solidarity Bonds have fixed rates over the term of the investment so any money already placed in the existing issues of these products will continue to receive the old rates for the remaining term of the product.

All applications for purchases received in a post office or mailed prior to 16 December 2012 will receive the old rates.

An NTMA spokesman said: “The new rates reflect changes in the wider market for savings products and continue to offer savers a competitive return on their money over periods of up to 10 years.”

All State Savings money is placed directly with the Irish Government.

More information about State Savings products is available on the State Savings website.

Note 1: AER is the Annual Equivalent Rate. The AER quoted assumes no early encashment.
Note 2: The annual interest payments on the National Solidarity Bonds are subject to DIRT at the prevailing rate.
Note 3: The AER on Instalment Savings assumes an average term of 5½ years (12 equal monthly lodgements followed by a 5 year term).

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