The National Treasury Management Agency (NTMA) has today announced new issues of State Savings products with lower interest rates.
The new rates will only apply to new purchases that are registered from Sunday 5 October 2014 and will have no effect on previous issues of fixed rate products.
You can see the updated list of our best buy fixed term savings accounts here.
CHANGES
3-year Savings Bond (Issue 16) 2.5% fixed-rate (AER 0.83%)
(This was previously 4%)
4-year National Solidarity Bond (Issue 5) 4% fixed-rate (AER 0.99%)
(Was previously 6%)
5½ -year Savings Certificate (Issue 21) 7% fixed-rate (AER 1.24%)
(Was previously 10%)
10-year National Solidarity Bond (Issue 5) : 25% fixed-rate (AER 2.26%)
(Was previously 30%)
(AER is the Annual Equivalent Rate. The AER quoted assumes no early encashment.
All previous issues of these products are now closed to new purchases.)
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.
The variable rate used to calculate the monthly Prize Bond prize fund in November 2014 (and until further notice) will be cut from 1.6% to 1.25%.