Interest on State Savings products to increase
Daragh Cassidy
Head Writer

The NTMA is increasing the interest rate on its State Savings products and trebling the size of its prize bond fund.

The National Treasury Management Agency (NTMA) has announced that it's increasing the rates that apply to its State Savings products.

State Savings is the brand name for the range of Government savings products offered by the NTMA to personal savers. 

State Savings aren’t subject to Deposit Interest Retention Tax (DIRT), meaning they're a popular choice for Irish savers. However, they've become much less attractive in recent years after the returns on offer were slashed.

However after the Government put huge pressure on the main banks to hike their deposit rates following numerous ECB rate hikes, the Government itself came under big pressure to improve its own rates. 

What State Savings products are changing?

The NTMA is upping the rate on all its fixed-term products.

  • The National Solidarity Bond (10 years): The rate on offer has been increased from 1.50% to 2.01% AER. This gives a total return of 22% over the 10 years. A €10,000 investment which would have previously seen a €11,600 return will now see savers get back €12,200.
    • Instalment Savings (6 Years) - Has been increased from 0.98% AER to 1.75% AER. This gives a total return of 10% over the six years.
    • Savings Certificate (5 years) - Has been increased from 0.98% AER to 1.74% AER. This gives a total return of 9% over the five years.
    • Savings Bond (3 years) - Has been increased from 0.33% AER to 1.32% AER. This gives a total return of 4% over the three years.

    The new rates will apply to all new fixed-term products taken out on or after 1st October 2023.

    In setting interest rates on State Savings, the NTMA seeks a balance between providing customers with a savings option and providing long-term value to the Exchequer in terms of managing the cost of borrowing. Rates are subject to ongoing review and take account of a number of factors, which include the wider interest rate environment, the strength of the State’s fiscal and funding position, and competitive developments in the retail savings market.

    Dave McEvoy, NTMA Director of Funding and Debt Management

    Prize bonds 

    The NTMA also sells prize bonds.

    You can invest from as little as €25 (four bonds) and each bond you hold puts you into a weekly and monthly draw to win money.

    The prize money is paid out tax-free and the NTMA has announced that it's almost trebling the size of the fund to €48 million.

    There will now be a top prize of €500,00 to be won every month, up from €250,00 every quarter at present.

    And each week there will be 20 prizes of €1,000 and 20 prizes of €500 on offer, compared to 10 prizes of €1,000 and 10 prizes of €500 currently. 

    There will also be a top weekly prize of €50,000.

    The new prize fund structure will come into effect from 1 October.

    You can buy prize funds online, in your local post office, by post or over the phone. 

    Is this the best option for my savings?  

    All the main lenders have hiked their deposit rates over the past few weeks, with rates of up to 3% now on offer.

    While these rates are better than the maximum rate of 2.01% now on offer from the NTMA, you will of course pay tax of 33% on the returns, so this needs to be borne in mind.

    The 3% rate on offer from the banks is actually around the same as a 2% tax-free return.

    Rates of over 4% on also on offer from banks elsewhere in Europe, which can be accessed through Raisin. Or maybe you'd be better off putting any excess cash into your pension or investing in a home retrofit. Either way, make sure to consider all your options for your money.

    And you can compare all the savings and deposit rates from all lenders on

    Get in touch 

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