Interest rates for State Savings products rise for first time in almost 16 years

The interest rates paid on State Savings products are being increased for the first time in almost 16 years, it has been confirmed. 

The rates increase follows six interest rate hikes by the European Central Bank since last summer. 

The popular State Savings products are sold in Post Offices. 

The National Treasury Management Agency (NTMA) today (March 26) announced the launch of new issued of State Savings Fixed Rate, Savings Certificates, Instalment Savings and 10 Year National Solidarity Bond. 

The changes will see a 10-year National Solidarity Savings Bond give a total return of 16%, compared to the previous 10%. 

Six-year Instalment Savings will offer a total return of 5.5%, compared to the previous 3.5%.

However, there is no change in the fund paid out on Prize Bonds.

The NTMA confirmed that all previous issues of Savings Certificates, Instalment Savings and 10 Year National Solidarity Bond are now closed. The new rates will have no effect on existing product holders.

Money which has already been placed in previous issues of these products will continue to receive the fixed rates applicable when the product was purchased, for the remaining term, the NTMA said.