The Minister for Finance, Michael McGrath, has today (1st September) welcomed the announcement by the National Treasury Management Agency (NTMA) of increases in the interest rates on State Savings products.
State Savings is the brand name used to describe the range of Irish Government savings products offered by the NTMA to personal savers. It offers Fixed-Term fixed-rate savings products, Prize Bonds and Deposit Accounts.
State Savings have no fees or transaction charges when lodgements and withdrawals are made and the State Savings Fixed Term Products are also tax free savings products.
When a person saves with State Savings they are placing money directly with the Irish Government. Repayment of all State Savings money is a direct, unconditional obligation of the Irish Government. Funds saved in State Savings Fixed Term products and Prize Bonds are placed in the Central Fund of the Exchequer and are used to fund Government expenditure. They form part of the National Debt of Ireland.
During 2022 there were net inflows of €0.7 billion into State Savings products compared to €1.3 billion in 2021. The total value of State Savings holdings was €24.9 billion at end-July 2023 which includes Deposit accounts and forms over 10% of Gross Debt of Ireland.
Commenting on the rate increases, Minister McGrath said:
“It has been widely discussed that the interest rate environment has changed significantly over the last 12-18 months, and I welcome today’s announcement by the NTMA to increase rates. This will provide State Savings customers with an increased return on all new fixed-term savings and deposit accounts, along with an increased Prize Fund for Prize Bond holders from 1st October 2023, while also supporting the valuable conduit that State Savings provide for the Irish State to raise funding.
State Savings digital development programme has improved accessibility options for savers, complementing the traditional service through the post office network. The launch of State Savings Online, a digital platform for customers, unique QR codes for purchases without an application form and the launch of Electronic Funds Transfer or EFT, instead of cheques for fixed-term customers, gives customers easier access to State Savings products.”
