What are the rates effective from 24th January 2021?

The rates effective from 24th January 2021 are outlined below. These rates will apply to any State Savings product purchased from 24th January 2021 onwards.

Product Term Total Return AER
Savings Bonds Issue 17 3 years 1% 0.33%
National Solidarity Bond (4 Year) Issue 6 4 years 2% 0.5%
Savings Certificates Issue 23 5 years 3% 0.59%
Instalment Savings Issue 15 6 years
(1 year saving plus
5 years on deposit)
3.5% 0.63%
National Solidarity Bond (10 Year) Issue 7 10 years 10% 0.96%
Deposit Accounts including Post Office Savings Bank Variable period 0.05% 0.05%
The variable rate which determines the Prize Fund for Prize Bonds has been changed to 0.35%. This is effective from February 2021.      
 
 

FAQs

Who sets the interest rates for State Savings products?

The rates are determined by the NTMA with approval of the Minister for Finance.

State Savings products, which are managed by the National Treasury Management Agency (NTMA) enable personal savers to invest their money in the State.

State Savings products including National Solidarity Bonds, Savings Bonds, Savings Certificates and Prize Bonds are available to purchase via website, by post or in any Post Office.

The NTMA keeps the interest rates paid under constant review to ensure that the products remain competitive in the savings market generally and attractive to savers, represent good value for the Exchequer, while also remaining conscious of the cost to the tax payer.

Why have rates changed now?

The new rates reflect the reductions in interest rates in the savings market and in Sovereign bond yields generally.

Will the rates change on my existing State Savings products?

All previous fixed term products have fixed rates over the period of the investment so any investments already in place prior to the 24th January 2021 in a fixed term product will receive the rates applicable to them at the time of purchase. These products are:

  • Savings Bonds

  • 4 Year National Solidarity Bond

  • Savings Certificates up to Issue 22

  • Instalment Savings up to Issue 14

  • 10 Year National Solidarity Bonds up to Issue 6

The variable rate applied to Deposit Accounts has changed effective from 24th January 2021 from 0.15% to 0.05%.
The variable rate which determines the Prize Fund for Prize Bonds has also been changed to 0.35% (from 0.5%). This is effective from February 2021, with the first Prize Bond draw based on this new variable rate taking place on 5th February 2021.

What changes are being made to Prize Bonds?

There are two changes relating to Prize Bonds that take effect from February 2021. The first Prize Bond draw to reflect these changes will take place on 5th February 2021.

  1. The interest rate applied to generate the Prize Fund is now 0.35%.

  2. There are changes to the prize structure. See new structure below:

Prize value Number
€250,000 Awarded in the last draw in March, June, September and December
€50,000 Awarded in each weekly draw other than when the €250,000 prizes are available
€1,000 10 prizes each week
€500 10 prizes each week
€50 All other prizes*

  

*The number of €50 prizes will change on a monthly basis in line with the changes in the value of the Prize Fund.

I received a maturity notice for my Fixed Term investment which matures before 24th January. What will I earn if I reinvest?

If you have returned your fully completed Maturity Options Form prior to 24th January 2021, your reinvestment will be as per the product issues available prior to the rate change and will attract those rates.

I have the maximum amount invested in the product issues on sale pre 24th January 2021. Can I now purchase the new issues?

Yes, you may purchase Savings Certificates (Issue 23) and 10 Year National Solidarity Bonds (Issue 7) as these have new issues effective from 24th January 2021.

Do these changes affect the security of investments in State Savings?

No. The repayment of all State Savings money, including Prize Bonds, is a direct, unconditional obligation of the Irish Government. When you save with State Savings you are placing your money directly with the Irish Government.