State Savings Rates (incl. Prize Bonds) to Increase - Finally

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State Savings Rates (incl. Prize Bonds) to Increase - Finally

https://www.rte.ie/news/business/2026/0817/1588190-ntma-to-increase-ireland-state-savings-rates/

and

https://www.independent.ie/business...nd-prize-bond-fund-increased/a/160115856.html

Annual interest paid on the three-year Savings Bond will rise by 0.64 of a percentage point to 1.96pc in annual equivalent rate (AER) terms from August 30.

The five-year Savings Certificate AER increases by 0.55 of a percentage point to 2.29pc.

The six-year Instalment Savings AER increases by 0.58 of a percentage point to 2.33pc.

When it comes to the 10-year National Solidarity Bond, the AER increases by 0.65 points to 2.66pc.

Changes being made mean the total return for new issues of Savings Bond will rise from 4pc to 6pc.

The total return for Savings Certs will increase from 9pc to 12pc, and from 10pc to 13.5pc for the Instalment Savings product.

The National Solidarity Bond will have a total return of 30pc, up from 22pc.

The variable rate that applies to all holders of Post Office Savings Bank deposit accounts will increase by 0.5 of a percentage point to 1.25pc from August 30.

The fund used to calculate what is paid out on Prize Bond is increasing from 1pc to 1.5pc from the start of September.

The weekly draw will have more prizes and higher-value prizes. Based on the current level of Prize Bonds outstanding, 10,000 prizes are expected to be awarded every week.

A top monthly prize of €500,000 remains in the last weekly draw of every calendar month.

The top prize in every weekly draw is being doubled from €50,000 to €100,000. Each week there will be 50 prizes of €1,000, in place of the current 20 prizes of €1,000 and 20 prizes of €500.

The remaining weekly prize fund will be awarded in €100 prizes, which is an increase on the current prize of €75.
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None of the above, apart from Post Office Savings Bank deposit accounts, are liable for DIRT
 
From the State Savings Website : https://www.statesavings.ie/help-support/help-articles/what-are-the-rates-as-of-30th-august-2026

​

What are the rates as of 30th August 2026?​



Fixed Term Rates​

The fixed term rates effective on the new issues from Sunday 30th August 2026 are:

ProductFixed Term YearsInterest RateNet AER (Note 1)
3 Year Savings Bonds - Issue 1936.00%1.96%
5 Year Savings Certificates - Issue 26512.00%2.29%
6 Year Instalment Savings - Issue 18613.50%2.33% (Note 2)
10 Year National Solidarity Bond - Issue 101030.00%2.66%

Note 1 AER = annual equivalent rate. The AER assumes no early encashment.
Note 2 AER on Instalment Savings assumes an average term of 5½ year (12 equal monthly lodgements followed by a 5 year term).

Deposit Account​

The new variable interest rate, effective on 30th August 2026 for the Deposit Accounts is:

ProductVariable Rate
Deposit Account1.25% (Note 3)

Note 3 Subject to Deposit Interest Retention Tax (DIRT) at the prevailing rate. Interest calculated daily and credited yearly on 31 December.

Prize Bonds​

The variable % rate used to calculate the prize fund from 1st September 2026 is 1.50%, this rate will apply until further notice.

ProductVariable Rate
Prize Bond fund rate1.50%
​

The new Prize Structure is as follows:
  • €500,000 - Jackpot Prize awarded in the last draw of each month
  • €100,000 - 1 prize each week
  • €1,000 - 50 prizes each week
  • €100 - all other prizes*

*The number of €100 prizes will change monthly in line with the changes in the value of the Prize Fund.

Who sets the interest rates for Ireland State Savings products?​

Rates for Ireland State Savings products are determined by the National Treasury Management Agency (NTMA) with the approval of the Minister for Finance.

The NTMA reviews rates to ensure that products remain competitive in the savings market generally, whilst providing value to the Exchequer in terms of borrowing costs.

I have existing savings with you, will my rates change?​

All previous issues of Savings Bonds, Savings Certificates, Instalment Savings, and 10 Year National Solidarity Bond are now closed.

The new rates will have no effect on existing product holders of the fixed-term products. Money which has already been placed in previous issues of these products will continue to receive the fixed term rates applicable when the product was purchased, for the remaining term.

I have just invested with you, what interest rate will I receive?​

All purchases made in a post office prior to 30th August 2026 or made online or by post prior to 30th August 2026 will be at the interest rates applicable before that date.
All purchases made on or after 30th August 2026 will receive the interest rates of the new issues (listed above).

Maturity Dates/Reinvestments​

I received a maturity notice for my investment which matures after the 30th August 2026. What will I earn if I reinvest? ​

Where you have received a maturity notice and reinvestment form you can invest as per the options shown on the reinvestment form subject to you returning your choice to us. If you choose to reinvest online, the available options will be presented to you online.
All previous issues of Savings Bonds, Savings Certificates, Instalment Savings, and 10 Year National Solidarity Bond will close on the 29th August 2026.
We will continue to hold the total amount payable to you until such instructions are received.
No interest, bonus or other amount shall accrue in respect of a Product on or after the Maturity Date.

I have investments maturing on or after 30th August 2026 and have not yet received any notice from you. What rates will I be offered for reinvestments?​

The rates that will be offered to you will be the new rates effective from 30th August 2026.

I have the maximum invested in the current issues. Can I now purchase the new issues?​

Yes. The new issues are available from 30th August 2026.

What are the minimum and maximum purchase amounts?​

The minimum purchase amount for Savings Bonds, Savings Certificates and National Solidarity Bonds is €50.00.
The maximum investment for Savings Bonds, Savings Certificates and National Solidarity Bonds is €120,000 for individuals.
The maximum overall limit for Deposit Accounts is €250,000 per individual customer.

Who can buy Ireland State Savings Products?​

An individual over 18 years of age can buy Ireland State Savings Products. Anybody under 18 (a minor) can own Ireland State Savings products as long as a parent or guardian of such Minor either makes the application on the Minor’s behalf or gives his or her written consent to the application.
A charity registered with the Revenue Commissioners, an unincorporated body that does not carry on business can also apply to purchase Ireland State Savings products.
Companies are not eligible to purchase hold any fixed term Ireland State Savings products or Prize Bonds.
Ireland State Savings products are subject to Terms and Conditions.

Do these changes affect the security of my investment in Ireland State Savings?​

No, all Ireland State Savings money is placed directly with the Government, the repayment of which is a direct obligation of the Irish Government.

Can I early encash my existing holdings and purchase new issues?​

Yes. All Ireland State Savings products are subject to Terms and Conditions.

When was the last change in interest rates and Prize Structure?​

The last change in interest rates:

  • August 2026 for Fixed Term products (Savings Bonds, Savings Certificates, Instalment Savings and 10 Year National Solidarity Bonds), and Variable Rate Deposit Account
  • The variable % rate used to calculate the prize fund from 1st September 2026 is 1.50%, this rate will apply until further notice

How was the change of rate communicated?​

Notice on Ireland State Savings website from 30th August 2026
Notice in Post Offices
Notices in the following National Newspapers:
30th August 2026

  • Sunday Independent
  • Sunday Times
  • Sunday Business Post
31st August 2026

  • Irish Times
  • Irish Independent
  • Irish Examiner
  • Daily Mail

Prize Bonds​

What is the new prize fund rate?​

The variable % rate used to calculate the prize fund from 1st September 2026 is 1.50%, this rate will apply until further notice.

What is the new Prize Structure? ​

The new Prize Structure is as follows:

  • €500,000 - Jackpot Prize awarded in the last draw of each month
  • €100,000 - 1 prize each week
  • €1,000 - 50 prizes each week
  • €100 - all other prizes*
*The number of €100 prizes will change monthly in line with the changes in the value of the Prize Fund.

How are the number of prizes calculated?​

The National Treasury Management Agency (NTMA) sets the variable percentage rate used to calculate the prize fund. The variable % rate used to calculate the prize fund from 1st September 2026 is 1.50%, this rate will apply until further notice.

The value of the prize fund is recalculated at the end of every month, in line with the monthly net sales of Prize Bonds.
The rate of interest used and the number and value of prizes are variable and can be changed by the NTMA. Any changes to the Prize Structure will be notified through press advertisements and on the StateSavings.ie website.

Who sets the rate?​

Rates for Ireland State Savings products are set by the National Treasury Management Agency with the approval of the Minister for Finance.
The NTMA reviews rates to ensure that products remain competitive in the savings market generally, whilst providing value to the Exchequer in terms of borrowing costs.

Who can buy a Prize Bond?​

An individual over 18 years of age can buy Prize Bonds. Anybody under 18 (a minor) can own Prize Bonds as long as a parent or guardian of such Minor either makes the application on the Minor’s behalf or gives his or her written consent to the application.
A charity registered with the Revenue Commissioners, an unincorporated body that does not carry on business can also apply to purchase Prize Bonds.
Companies are not eligible to purchase any fixed term Ireland State Savings products or Prize Bonds.
 
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From the NTMA website: https://www.ntma.ie/news/ntma-to-increase-ireland-state-savings-rates​

​

NTMA to increase Ireland State Savings rates​

  • Rates across fixed term products to increase by up to 0.65% (AER)
  • Variable rate on Post Office Savings Bank (POSB) deposit accounts to increase by 0.5% (AER) to 1.25%
  • Prize Bond fund to increase to 1.5 times its current level, with 10,000 prizes expected to be awarded every week
Monday, 17 August 2026

The National Treasury Management Agency (NTMA) is increasing the rates that apply to new issues of Ireland State Savings fixed term products with effect from 30 August 2026.

The NTMA is also increasing the variable rate on Post Office Savings Bank (POSB) deposit accounts with effect from 30 August 2026.

The variable rate used to calculate the monthly prize fund for Prize Bonds will also increase with effect from 1 September 2026.

The rate change details are as follows:

Fixed term product changes

The rate changes for new issues of fixed term products taken out on or after 30 August 2026 are:

  • 3-Year Savings Bond AER (Annual Equivalent Rate) increases by 0.64% to 1.96%
  • 5-Year Savings Certificate AER increases by 0.55% to 2.29%
  • 6-Year Instalment Savings AER increases by 0.58% to 2.33%*
  • 10-Year National Solidarity Bond AER increases by 0.65% to 2.66%
With effect from 30 August 2026, the changes in total return for new issues of these products are as follows:

  • 3-Year Savings Bond increases from 4% to 6%
  • 5-Year Savings Certificate increases from 9% to 12%
  • 6-Year Instalment Savings increases from 10% to 13.5%
  • 10-Year National Solidarity Bond increases from 22% to 30%
Returns earned on these products are tax free.

Deposit account rate changes

The variable rate that applies to all holders of Post Office Savings Bank (POSB) deposit accounts will increase by 0.5% to 1.25% from 30 August 2026. DIRT (Deposit Interest Retention Tax) applies to interest on these deposits.

Prize Bond changes

The Prize Bond fund is being increased to 1.5 times its current level. With effect from 1 September 2026, the variable rate used to calculate the monthly prize fund is increasing from 1.00% to 1.50%. This is the variable rate that will be used to calculate the prize fund from September 2026.

The prize structure will also change as follows:

  • The weekly draw will have more prizes and higher-value prizes. Based on the current level of Prize Bonds outstanding, 10,000 prizes are expected to be awarded every week.
  • A top monthly prize of €500,000 remains in the last weekly draw of every calendar month.
  • The top prize in every weekly draw is being doubled from €50,000 to €100,000. Each week there will be 50 prizes of €1,000, in place of the current 20 prizes of €1,000 and 20 prizes of €500.
  • The remaining weekly prize fund will be awarded in €100 prizes, which is an increase on the current prize of €75.
Prize Bond winnings are tax free.

Dave McEvoy, the NTMA’s Director of Funding and Debt Management, said:

“Retail savings are an important element of the NTMA’s funding strategy providing diversification in our funding and investor base.

In setting rates on Ireland State Savings, the NTMA seeks a balance between providing customers with a safe and competitive savings option and providing long-term value to the Exchequer in terms of managing the cost of borrowing.”

Other information

As new issues of Savings Bonds, Savings Certificates, Instalment Savings and National Solidarity Bonds will be available from 30 August 2026, all previous issues of these products will close on 29 August.

The new rates in respect of the new issues of these fixed term products will not apply to previous issues of these products taken out before 30 August.

Products taken out prior to this date will continue to receive the fixed rates applicable when the relevant product was taken out.

All Ireland State Savings products are subject to Terms and Conditions. For more information visit https://www.statesavings.ie/.

How to become an Ireland State Savings customer?

Download a new customer application form from statesavings.ie or pick up a form at the Post Office. Customers can apply to purchase a savings product once they receive a State Savings Customer Number (SSCN).

How to purchase Ireland State Savings products?

Existing customer can visit statesavings.ie for a quick and easy way to purchase Fixed Term Products and Prize Bonds (please note Instalment Savings and Childcare products cannot be purchased online). Purchases can be made at any Post Office or by calling the dedicated Ireland State Savings team on 0818 20 50 60 (Mon-Fri 08.00-20.00).

* AER = annual equivalent rate. AER on Instalment Savings assumes an average term of 5½ year (12 equal monthly lodgements followed by a 5 year term).
 
Given that they are DIRT free, they look like a pretty good deal. Especially if you have more than 100k seeing as they are about as secure as you are going to get and you don't have to split it over multiple banks.
 
Interesting.

The NTMA might be responding to increased bond yields via trying to raise more money from domestic retail sources.

The 5 year rate is actually now the highest 5 year rate on the market given that a 33% taxable product would need to pay approx. 3.42% to match a 2.29% tax free product and the next highest 5 year rate on the market pays 3.25%.

The 3 year rate is not the highest on the market even after factoring in the fact that it is tax free.

The State Savings instant access rate product at 1.25% is still very poor and not tax free.

The Prize Bond statistical yield of 1.50% is still very poor compared to deposit rates and also poor given that the chances of winning a prize are so small.
 
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Lightning said:
The Prize Bond statistical yield of 1.25% is still very poor compared to deposit rates and also poor given that the chances of winning a prize are so small.
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I'm getting 1.18% as the likely return from Prize Bonds when the larger prizes are set aside. This is up from .77%. Grossed up to allow comparison with DIRT liable products, 1.18% net is equivalent to 1.76% gross which as you say is still poor enough. As @Connard said there are some other reasons for holding Prize Bonds and other state savings products (e.g. elevated and superior capital guarantee - largely an issue for those who want to hold very large amounts in cash) plus access at any time but there are also arguments against - State Savings have appalling customer service and many of their fixed term products are now structured such that early withdrawals are heavily penalised.
 
Duke of Marmalade said:
I am getting 1.21% as the return on €100 prizes. My revised spreadsheet attached is not fully checked.
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Thanks for updating and posting this. 3 suggested changes:
  • Cell B4 (total prize fund) €4,366,469,976 (as at end of July 2026)
  • Cell E7 (number of €100k prizes per annum) 52
  • Cell A14 “Chance of a medium win .5k/1k” should read “Chance of a medium win 1k”
 
However, although we have collectively stashed away almost 24 billion in these accounts unfortunately the average annual rate of inflation in Ireland in recent years (since Jan 2022) has been c4.3%pa and is still running over 3%, meaning that although we may perceive these as safe, tax free accounts they have in fact all lost value recently in real terms.

Does risk mean short term temporary market volatility or a permanent loss of purchasing power?


In the short term it’s the former but the painful truth is that in the long term it’s always the latter. It’s in our nature to overweight the first and underweight the second.


We need to get better at understanding that State Savings are not “investments” because you are most likely not going to be better off at the end of the term.

Why would anyone put money into the 10 year certificate, deny themselves the use of the money for a decade and, probably; be worse off at the end of the term, especially compared to someone who invested in real asset over the same period?

Yes it’s a source of cheap funding for the State compared to the commercial rates NTMA has to pay in the Bond market, so it’s very charitable of you, but don’t you pay enough in tax already?
 
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On Interactive Brokers I can buy a 0% Coupon Irish Government Bond (ISIN IE00BMQ5JL65) at €85.85 below PAR. This matures on 18Oct2031 so similar to a 5 year term saving deposit. There is no CGT for Irish tax residents (Huge Plus).

The current Yield to Maturity (YTM) is 2.97%. A comparable Raisin A/C would need to be paying 4.43% (See Calc above) to match this return and there is nothing on Raisin even close to this rate.

As the Bond is 0% Coupon there is no income for income tax liability.

The Interactive Brokers fee to purchase is ~€2.00, that's it.

You can only purchase in blocks of €1000 (Based on PAR). So one Block costs €858.50 right now.

That is my plan......

P.S. The Bond is still liquid on this secondary market. The 'Pull to PAR' affect means that as the Bond moves to maturity the price should move close to PAR. I could sell after, for example, 4 years & still make out fine.
 
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Yeah, there is a lot to be said for direct investment in Irish government bonds via Degiro or Interactive Brokers over term deposits especially with this zero coupon bond. I might try to find a way to incorporate this fact into the term deposit best buy thread as a "deposit alternative" similar to the way MMF is a "deposit alternative" to instant access accounts.
 
Lightning said:
I might try to find a way to incorporate this fact into the term deposit best buy thread as a "deposit alternative" similar to the way MMF is a "deposit alternative" to instant access accounts.
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The coupon is zero and the term to maturity is 5 years so the modified duration is going to be around 5 years. That means a 1% increase in interest rates is going to mean a c5% drop in prices. Fine if you hold it to 2031 but not quite the same journey as a bank account between now and then.

I’m not disputing the strategy, I use it with my own clients, but doing this isn’t really the same as a bank account.
 
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Marc said:
this isn’t really the same as a bank account
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Agreed, it is not the same as all bank accounts. I was comparing it to a Raisin Bank 5 year term deposit. This is locked in for the 5 year term and if the Bond is held for the full term then the Bond strategy would do better.

I was aware that an increase in interest rates would negatively impact the traded value of the bond on the secondary market but that +1% means a c5% drop is new information, to me. Thanks for sharing that Marc, it is good to know.
 
I'm terms of State Savings, the dynamic Marc mentions is somewhat present there too.

On the current issue, if you take out a 5 year cert but have to encash after 2 years, you sacrifice five sixths of the return to maturity.

If you bought the 2031 bond above when market interest rates were 3% and had to sell two years later and market interest rates over the remaining duration had risen to 4%, you sacrifice about four fifths of the return to maturity. If market interest rates had stayed the same or fallen, you'd be much better off.

But appreciate the psychological factor that on the 2031 bond you may actually get back less than you put in if you must sell at an inopportune time.
 
blackdog said:
you may actually get back less than you put in if you must sell at an inopportune time
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True, but versus Raisin Bank 'Term Deposit' where you 100% can not access your funds under any circumstances.
For me, if I hold to maturity I do better than Raisin Bank's best alternative right now. If I need the money I have the possibility to access it before the term ends, with Raisin I do not.

Interest Rates go up - I hold to maturity.
Interest Rates go down - I have the option to sell early with a 0% capital gain.

So long as people have all the information they can make their own decisions.

I might add there are very few 0% (Or low %) coupon bonds where this strategy will work.
 
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