NTMA announces new issues of State Savings products and changes to interest rates
5 October 2014 - The National Treasury Management Agency (NTMA) has today announced:
a) new issues of its range of fixed rate State Savings products
b) a new variable interest rate used to calculate the prize fund for Prize Bonds
c) an increase in the Prize Bonds top weekly draw prize from €20,000 to €50,000
FIXED RATE PRODUCTS
3-year Savings Bond (Issue 16) offering a 2.5% fixed-rate total return (AER1 0.83%)
4-year National Solidarity Bond (Issue 5) offering a 4% fixed-rate total return (AER 0.99%)
· 5½ -year Savings Certificate (Issue 21) offering a 7% fixed-rate total return (AER 1.24%)
· 6-year Instalment Savings (Issue 13) offering a 7% fixed-rate total return (AER 1.24%2)
· 10-year National Solidarity Bond (Issue 5) offering a 25% fixed-rate total return (AER 2.26%)
Note 1: AER is the Annual Equivalent Rate. The AER quoted assumes no early encashment.
Note 2: The AER on Instalment Savings assumes an average term of 5½ years (12 equal monthly lodgements followed by a 5-year term).
All previous issues of these products are now closed to new purchases.
The new rates will only apply to new purchases that are registered from today (Sunday 5 October 2014) and will have no effect on previous issues of fixed rate products. Any money already placed in previous issues of fixed rate products prior to Sunday 5 October 2014 will continue to receive, for their remaining term, the fixed rates applicable to each product on the day of purchase.
VARIABLE RATE PRODUCTS
The variable rate used to calculate the monthly Prize Bond prize fund in November 2014 (and until further notice) will be 1.25%.There will continue to be a €1 million prize in the last weekly draw of each second month, viz. February, April, June, August, October and December. Commencing November 2014 the number of weekly €1,000 prizes is increased from 5 to 10 prizes and the €20,000 prize is increased to €50,000. Based on the current number of Prize Bonds, the new 1.25% rate will generate over 6,000 weekly €50 prizes.
There are no changes to the variable rate on the Deposit Account which continues to pay a rate of 0.25% subject to Deposit Interest Retention Tax (DIRT) or to the Deposit Account Plus (30 day notice) which continues to pay a rate of 0.50% subject to DIRT.
An NTMA spokesman said: “Interest rates have fallen across the retail savings market and there has also been a marked reduction in Irish Government bond yields. The new rates reflect the NTMA’s requirement to ensure that the rates paid on State Savings products are competitive.”
Editor’s Note:
At any time, the NTMA may amend the variable rates on State Savings products and the number and value of Prize Bond prizes, and may close the fixed rate, fixed term issues to new money. Prior to the introduction of any such changes, a notice is placed in the national newspapers and full details are available on www.StateSavings.ie All State Savings money is placed directly with the Government and the repayment is a direct unconditional obligation of the Government
'The new rates reflect the NTMA’s requirement to ensure that the rates paid on State Savings products are competitive.'
Cutting ensures they are competitive - doesn't make sense to me.
the ntma sold €500m of 6 month bonds at a negative rate of interest today.
I would expect the already woeful rates on state savings to be cut again very soon
It will probably take about a month for the card to arrive.
If you paid by cheque, they'll cash this early on. After 3-4 weeks you will get a statement/receipt of lodgement. About a week after that you will get the card.
.
NTMA cut coming?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?