THE INTERST RATE paid on a number of State Savings products are being increased for the first time in almost 16 years. 

This follows six interest rate hits by the European Central Bank since last summer. 

The National Treasury Management Agency (NTMA) today announced the launch of new issued of State Savings Fixed Rate, Savings Certificates, Instalment Savings and 10 Year National Solidarity Bond. 

The changes mean that a 10-year National Solidarity Savings Bond will see a new total return of 16%, compared with the previous 10%. 

Six-year Instalment Savings will now see a total return of 5.5%, compared with the previous 3.5%.

Five-year Savings Certificates will now see a total return of 5%, compared with the previous 3%. 

This is the first rate increase on the products since August 2007.

Since August 2017, the rates have been cut seven times, with the latest rate cut taking place in January 2021. 

“The rate increases today are focused on providing an increased return for savers on medium to long-term product offerings,” the NTMA said in a statement today.

“The NTMA constantly review rates to ensure that products remain competitive in the savings market generally, whilst providing good value to the Exchequer in terms of borrowing costs,” it said.

Minister for Finance Michael McGrath has welcomed the announcement by the NTMA of the increases. 

“State Savings has acted as both a valuable conduit for the Irish State to raise funding and for the public to invest their savings securely,” McGrath said.