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Interest rates on State savings schemes and Prize Bond Fund to be reduced

The NTMA said that the new rates “reflect the reductions in interest rates in both Sovereign bond yields and the retail savings market”.

Image: Shutterstock/Vladyslav Starozhylov

THE NATIONAL TREASURY Management Agency (NTMA) has said that interest rates for State savings schemes will be reduced, and the size of the Prize Bond Fund will also be reduced. 

The NTMA, which manages assets and liabilities of the Irish State, said in a statement to TheJournal.ie that the new rates “reflect the reductions in interest rates in both Sovereign bond yields and the retail savings market”.

“State Savings interest rates were last adjusted in June/July 2016, with the exception of Prize Bonds where the rate for the Prize Bond Fund was adjusted in August 2017.”

The National Solidarity Savings Bond (10 Years) now has a total return of 10%, instead of a previous total of 16%. The gross Annual Equivalent Rate (AER) is now 0.96% when it was previously 1.5%.

Instalment Savings (6 Years) have a total return of 3.5% now, which was previously 5.5%. The gross AER is 0.63% and was 0.98%.

Savings Certificates (5 Years) have a total return of 3% which was 5%. The gross AER is 0.59% and was 0.98%. 

The POSB (deposit account) had both a previous return and gross AER rate of 0.05% which is now 0.15% for both. 

Prize Bond Fund

Prize bonds are available at €6.25 each; the minimum purchase of four costs €25. Prize bonds are entered into a weekly draw with prizes ranging in value from €50 to €50,000, with a €250,000 prize awarded four times a year.

The variable interest rate used to earn money for the Prize Bond Fund will reduce from 0.5% to 0.35% from next month, the NTMA said today.

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The prizes have been reduced as a result. Now, four €250,000 prizes will be awarded in the last weekly draws in March, June, September and December.

Two €1 million prizes had been awarded in the last weekly draws in June and December. 

The top prize in all other weekly draws is €50,000. The other weekly prizes are 10 of €1,000, 10 of €500 and all remaining prizes are €50.

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