NTMA to launch savings products

The NTMA is rolling out a number of new savings products which will be available through An Post.

* A three-year savings bond offering a 7% fixed- rate total return or annual equivalent rate of 2.28%;

* a four-year National Solidarity Bond offering a 12% fixed-rate total return or an annual equivalent rate of 2.87%;

* a five-year savings certificate offering a 15% fixed rate total return or an annual equivalent rate of 2.83%;

* a six-year instalment savings product offering a 17% fixed rate total return or an annual equivalent rate of 2.9%;

* a 10-year National Solidarity Bond offering a 45% fixed rate total return or an annual equivalent rate of 3.79%.

An NTMA spokesman said: “The new rates reflect changes in the wider market for savings products and continue to offer savers a competitive return on their money over periods of up to 10 years.”

According to the NTMA, the interest rates are a reduction of between 0.35% and 0.95% on the AERs that were available with the previous issues of these products.

Meanwhile, from Jan 4, the interest rate used to determine the value of the prizes in the weekly Prize Bond draw will be 2.25% of the total value of all prize bonds outstanding.

There are also changes to deposit accounts.

The ordinary deposit account will now pay a variable rate of 0.25% and the deposit account plus will pay a variable rate of 1% — with the interest on both accounts still subject to the prevailing rate of Dirt tax.