The NTMA raised State Savings rates on 30 August 2026 and made Prize Bond prizes bigger. Here are the new rates, the tax position, the catches and how they compare with bank deposits.
Put money into a new 10-year National Solidarity Bond today and you get back 30% more at the end, up from 22% before August. That works out at 2.66% a year, and none of it is taxed. Bank interest, by contrast, loses a third to tax.
What State Savings are
State Savings products are run by the NTMA, the National Treasury Management Agency. It manages the State's borrowing. When you buy a bond or certificate, you are lending money to the State.
Your savings are protected by the State, with no upper limit. There are no fees or charges. You can buy online, by phone, by post or at a post office.
The new rates from 30 August 2026
| Product | Term | Total return | AER |
|---|---|---|---|
| Savings Bond (Issue 19) | 3 years | 6% | 1.96% |
| Savings Certificate (Issue 26) | 5 years | 12% | 2.29% |
| Instalment Savings (Issue 18) | 1 year saving + 5 years | 13.5% | 2.33% |
| National Solidarity Bond (Issue 10) | 10 years | 30% | 2.66% |
| Deposit Account (POSB) | No fixed term | Variable | 1.25% (DIRT applies) |
| Prize Bonds | No fixed term | Prizes, not interest | 1.50% prize fund |
AER means annual equivalent rate. It shows the return as if interest were added once a year, so you can compare products with different terms.
If you already hold an older issue, it keeps the rate you bought it at. The older issues closed to new money on 29 August 2026.
The catch: most of the return comes at the end
The returns are back-loaded. That means you earn little in the early years and most in the last. Cash in early and you get much less than the headline rate.
| Anniversary | Savings Bond | Savings Certificate | Solidarity Bond |
|---|---|---|---|
| 1st | 0% | 0% | 0% |
| 2nd | 3% | 2% | 1.25% |
| 3rd | 6% | 3.25% | 2.5% |
| 5th | n/a | 12% | 6% |
| 8th | n/a | n/a | 15% |
| 10th | n/a | n/a | 30% |
Half the Solidarity Bond's return comes in its last two years. Each product has a minimum of €50 and a maximum of €120,000 per person. Instalment Savings takes €25 to €1,000 a month.
Tax: no DIRT on most products
DIRT, Deposit Interest Retention Tax, takes 33% of the interest on a bank deposit. Savings Bonds, Savings Certificates, Instalment Savings and National Solidarity Bonds are not subject to DIRT. They are also free of income tax, PRSI, USC and Capital Gains Tax.
The State Savings Deposit Account is different. Its 1.25% variable rate is subject to DIRT. Some people over 65 on low incomes can get bank interest paid without DIRT.
You can lose your stake with Prize Bonds, like a lottery ticket.
You can cash Prize Bonds in at face value any time after 90 days. What you give up is interest: none is paid, and prizes come from a fund set at 1.50%.
Prize Bonds: bigger prizes since September
Each Prize Bond costs €6.25. The minimum is €25, which buys four, and the most you can hold is €250,000. Every bond goes into every weekly draw.
| Prize | Number | Before September |
|---|---|---|
| €500,000 | 1, in the last draw of each month | Same |
| €100,000 | 1 a week | €50,000 |
| €1,000 | 50 a week | 20 of €1,000 and 20 of €500 |
| €100 | All other prizes | €75 |
The NTMA raised the prize fund rate from 1.00% to 1.50%, making the fund one and a half times as big. It expects about 10,000 prizes each week. Prizes are tax-free.
total prizes won in the Prize Bond draw on Friday 16 October 2026
Source: statesavings.ieThe State Savings website does not publish the odds of winning. Some holders win often, others never, because the draw is random.
How they compare with a bank
In August 2026, Irish banks paid households an average of 1.88% on new fixed-term deposits, the Central Bank says. After 33% DIRT, that is about 1.26%. The new 3-year Savings Bond pays 1.96% with no tax.
Budget 2027 did not change DIRT. It did cut the exit tax on investment funds and life assurance from 38% to 35%, and announced a new Investment Account. Credit unions are another option: see our guide to credit unions and banks.
Saving a little each month
Instalment Savings is for regular savers. You pay in between €25 and €1,000 a month for 12 months. Your money then earns interest for five more years, building to 13.5% in total.
Like the other products, it pays nothing if you cash in within the first year of the interest period. It builds to 3.5% by the third anniversary and 8.4% by the fourth.
How to buy
- Pick the product that matches how long you can leave the money untouched.
- Check the current issue and rate on statesavings.ie.
- Buy online, by phone, by post or at your local post office. Prize Bonds can also be bought by monthly direct debit.
- Register for Ireland State Savings Online to see your savings, download statements and check Prize Bond wins.
What this means for you
- Keep money you may need within a year somewhere else. Bonds pay nothing in year one.
- Compare rates after tax. A bank rate loses 33% to DIRT; most State Savings do not.
- Your rate is fixed when you buy. Later rises or cuts do not change it.
- Prize Bonds suit people who are happy to swap interest for a chance of a prize.
- Check statesavings.ie for the current issue before you buy.
Weekly Prize Bond draws, with the €500,000 prize in the last draw of each month
The NTMA can change rates on new issues and the Prize Bond fund rate; existing savings keep their rate
Details of the Investment Account announced in Budget 2027
- NTMA: NTMA to increase Ireland State Savings rates, 17 August 2026
- Ireland State Savings: General Terms and Conditions, August 2026
- Ireland State Savings: Our products
- Ireland State Savings: Prize Bonds
- Ireland State Savings: About State Savings
- Revenue: What DIRT rate is applicable?
- Citizens Information: Deposit Interest Retention Tax
- Central Bank of Ireland: Retail interest rates
- Department of Finance: Budget 2027 Tax Policy Changes Summary
