The National Treasury Management Agency has announced that it is increasing the interest paid on Irish State savings products including savings bonds, solidarity bonds, deposit accounts and prize bonds.

From 30 August the rate of return on savings products will increase as follows:

  • Three-year Savings Bond: Annual Equivalent Rate (AER) will rise from 1.32% to 1.96%
  • Five-year Savings Certificates: AER increases from 1.74% to 2.29%
  • Six-year Instalment Savings: AER increases from 1.75% to 2.33%
  • Ten-year National Solidarity Bond: AER rises from 2.01% to 2.66%

    • There are no taxes due on returns from these schemes.

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    The rate on deposit accounts in the State Savings Scheme will earn an AER of 1.25% from 30 August.

    Prize Bonds, with are available at €6.25 each, with a minimum purchase value of €25, will see increases in the weekly and monthly prize. The weekly draw will see the top prize double to €100,000 and the number of €1,000 prizes increase from 20 to 50.

    There will also be weekly €100 prizes (increased from the current €74), the number of which will change in line with the value of the overall prize fund. The most recent draw has 8,592 winners of the €75 prize.

    There will be one monthly prize of €500,000, unchanged from the current level. The overall payout rate from the prize bond pool will be 1.5%. All prizes are tax free.

    State savings products can be purchased from post offices or online at statesavings.ie – once a registration process has been complete.

    Anyone over the age of 18 can buy the products, but companies are not eligible to purchase any fixed term Ireland state savings product or prize bonds.

    It is important to note that any bonds purchased before the 30 August change to interest rates will earn interest at the current rate for the lifetime of the product.

    Welcoming the first change in the rate of returns on state savings since October 2023, Tánaiste and Minister for Finance Simon Harris said: “I very much welcome today’s announcement by the NTMA to increase these rates as a measure that will help people who are saving and investing and want to make their hard-earned money go further. This announcement will provide Ireland State savings customers with an increased return on new fixed-term savings products and deposit accounts.”

    The move comes as interest rates are rising across the economy and both traditional and new digital banks increase the returns they are offering on deposits. The European Central Bank increased its deposit rate to 2.25% in June and is forecast to increase that rate again before the end of the year.

    While the State savings schemes have the advantage of tax-free returns, it is always worth shopping around before deciding which product is correct for individual circumstances.