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THE NATIONAL TREASURY Management Agency (NTMA) has today announced new issues of fixed rate State Savings products and changes to the interest rates on its variable rate products.
The new issues of the NTMA’s fixed rate products include:
The NTMA announced changes to variable rate products, which will have an affect on all existing Prize Bonds as well as the 30-day notice Deposit Account Plus.
The rate reductions will only affect new purchases made from today and will have no affect on the existing holders of Savings Bonds, Saving Certificates, Instalment Savings or National Solidarity Bonds – all of which have fixed interest rates.
The top prize structure for Prize Bonds is changing, with the previous €1 million prize offered each month being scrapped in favour of a €1 million prize in the last weekly draw of each second month, ie February, April, June, August, October and December. The Prize Bonds fund rate will be changed to 1.75 per cent from today.
Meanwhile, the variable interest rate on the 30-day notice Deposit Account Plus is also being altered, and will now pay a variable rate of 0.5 per cent AER subject to the prevailing rate of Deposit Interest Retention Tax (DIRT) (currently 33 per cent).
There will be no change to the Ordinary Deposit Account.
“The new rates reflect the reductions in interest rates in the savings market and in Sovereign bond yields generally,” an NTMA spokesperson said today.
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AER’s of half a percent on deposit accounts, cutting back on the big prize bond draw by half!!!! Ah don’t you yearn for Charlie Mc Creevy and his five year savings plan?
why announce this in a bank holiday sunday ?? why no a business day when people are paying attention to the news.
Permanent TSB are up the creek. Is this why they’re advertising their new deals?
There is a timely warning from the IMF no less to depositors on the financial state of the PTSB bank,if it should collapse under the weight of its losses.
More proof if u ever wanted that the banks run this country not the government
You’ve got to be off your head to invest in government bonds
Would you recommend something else, Paul? (Genuine question!)
Clearly you don’t understand Financial Markets then.
The rate changes are a result in huge pressure from Banks to make make their own deposit accounts more attractive.
The attacks on asset ownership are not good. Making it almost a crime to invest or save is the stuff of nightmare communist tyranny where people were executed for normal farming practice of keeping back grain as seed for the following year, accused of hoarding
Its a brave soul indeed who would tie up money in a 10 year government bond,no matter what rate of interest was paid, if the country ever defaulted on its debt,the losses could be huge for investers,even a 5 year bond is a gamble, but then so is everything else these days.
When do the new rates kick in?
New purchases made from today
Ah shite, I thought that might be the case! I was considering purchasing, but the new rates are a bit of a drop from the old ones! Still better than the banks, mind. Thanks Colin.
They’re not very appealing at all
Just seen the date the changes take effect in the article. Now I feel stupid for asking. In my defence, it is Sunday afternoon!
I just copied & pasted my original answer!
The comments are sometimes more interesting than the articles anyway :)
Where else would one recommend investing – my planned 10 year would return 45% versus new figure of 35% ?
Have a look at the property market in brasil. Especially country club investments. Can return up to 50% in 3-5 years depending on the amount initial investment. World cup is there next year too so big boost there.
We haven’t learnt anything
Better than the banks
I’m cashing in my prize bonds it’s just dead money now.
NTMA could have brought in a deadline of say a week or two instead of “effective immediately” & bringing this out on a Sunday of a Bank Holiday Weekend minimises any negative media attention.
have your say