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The National Treasury Management Agency (NTMA) has raised the interest rates offered on State Savings accounts and almost tripled the fund available in Prize Bonds to approximately €48m.
The value of the monthly prize fund is recalculated at the start of each month by applying a variable interest rate which will increase from 0.35% to 1%.
Under the new Prize Bond structure, the top monthly prize now stands at €500,000 up from €250,000. The top weekly prize is now €50,000.
In addition, each week there will be 20 prizes of €1,000 and 20 prizes of €500 respectively, compared to 10 prizes of €1,000 and 10 prizes of €500 currently.
The NTMA has increased the interest rate on a three-year savings bond from 1% to 4% over the lifetime of the account. The rate on a five-year bond will go from 5% to 9% while a six-year bond’s rate will increase from 5.5% to 10%.
A 10-year national solidarity bond has an interest rate of 22% – up from 16% – over the bond’s lifetime.
Interest accrued on these savings accounts is tax-free.
All the new rates and the new prize bond structure will come into effect on October 1.
Dave McEvoy, director of funding and debt management at the NTMA, said it is trying to find a balance between providing customers with a savings option and providing long-term value to the Exchequer.
At the end of July, the total value of State Savings holdings was €24.9bn.
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