State Savings in Ireland

Ireland State Savings is the name for Government-backed savings products that pay tax-free interest. But how do they work, and are they the best option for Irish savers?

On this page, we look at the different products available and how State Savings interest rates compare with other savings accounts on the market.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

Ireland State Savings is the brand name for the range of Government-backed personal savings products offered by the National Treasury Management Agency (NTMA). They’re also referred to as An Post State Savings or Post Office State Savings.

When you invest in an Ireland State Savings product, you’re placing your money directly with the Irish Government. Whether you opt for one of the fixed-term savings products or Prize Bonds, the Government is obliged to repay your investment along with any interest or prize winnings. Your investment is fully backed by the Irish Government under its statutory guarantee, offering a high level of security for your savings.

There are several types of Ireland State Savings products available. Here’s a brief overview of some of the products you can choose from:

• Savings Bonds

A Savings Bond is a three-year fixed rate savings account. You can currently save a minimum of €50 and a maximum of €120,000 per individual, per issue.

• Savings Certificates

Five-year term, usually offering a slightly higher rate. You can invest between €50 and €120,000 per issue (or €240,000 for joint holdings).

• National Solidarity Bonds

Available for 10 years — the longest duration among State Savings products. Same investment limits as above.

• Prize Bonds

Prize Bonds don’t pay interest; instead, your savings enter a weekly prize draw. Prizes range from €75 to €50,000, with a €500,000 prize in the final draw each month.

You can buy in units of €6.25, minimum €25, maximum €250,000. Winnings can be paid to your bank account or reinvested.

Generally speaking, Ireland State Savings and An Post State Savings refer to the same Irish Government-backed savings products.

Ireland State Savings are offered by the NTMA and can be bought directly via the Ireland State Savings website. An Post is responsible for the sale and administration of Ireland State Savings products, which you can open through Irish Post Offices.

Whether you call them State Savings, An Post State Savings, or Post Office State Savings, you’re effectively referring to the same range of savings products.

This depends on the product you choose:

• Fixed-term products: You receive your deposit plus interest at the end of the term. You can withdraw early with seven days’ notice, but you won’t earn further interest.

• Prize Bonds: Redeemable any time after 90 days; repayment may take a few days to reach your account. You’ll get back the amount you paid (plus any prizes, if they were added to your balance).

• For a more flexible option, Ireland State Savings also offers a deposit account with easy access to your funds. You can withdraw up to €3,000 a day at the Post Office.

As of October 2025, the State Savings rates are as follows:

Source: https://www.ntma.ie/news/ntma-increases-rates-for-state-savings-products

While State Savings offers tax-free returns, rates may still be lower compared to other savings accounts or investments. To assess the true return, it's important to focus on the annual equivalent rate (AER).

In September 2023, the National Treasury Management Agency (NTMA) increased rates across several products, including the Prize Bond fund*. These rates still apply in 2025.

The NTMA periodically reviews the State Savings interest rates, but no further updates have been announced.

No. One of the main benefits of Ireland State Savings is that returns are tax-free. Interest or Prize Bond winnings are exempt from deposit interest retention tax (DIRT), which is set at 33% in 2025. Returns are also exempt from income tax, pay related social insurance (PRSI), and capital gains tax in Ireland.

No fees apply for standard lodgements or withdrawals.

For competitive interest rates, some savers look to saving beyond Ireland. At Raisin, you can access high-yield savings accounts through our partner banks across Europe. Raisin’s minimum term for selected fixed term deposits is just three months. Savers can benefit from a fixed interest rate, but with a wide range of saving terms to choose from. 

What’s more, deposits of up to €100,000 per person, per bank are protected under the national deposit guarantee scheme of the country where the bank is headquartered.

Although the tax-free earnings and security that come with Ireland State Savings make them popular among savers, it’s worth comparing the returns against other options.

State Savings products often highlight the ‘total return’ for the full term. For example, the 10-year bond might be advertised as offering a total return of 22%, but that doesn’t mean you’re earning 22% every year. Spread over ten years, it works out at just 2.01% AER. Focusing on the AER (annual equivalent rate)lets you compare different savings products on a like-for-like basis..

For example, let’s say you invest €1,000 in a 10-year bond. At the end of 10 years, you’ll have €1,220 (based on the 22% total return). But remember that growth is slow in the first few years. If you withdraw your money after two years, you’d only earn around €10 in interest in total, which works out to an AER of just 0.50%. The longer you leave your money in, the closer you get to the total return rate, and you only reach the full 22% if you leave your cash in until maturity. That’s why the AER is the more telling figure.

This example underscores why you might want to compare a range of products from the wider market to ensure you’re getting a competitive return.

With Raisin, you can apply to open savings accounts across Europe through one secure online platform.  Easily spread your money across fixed interest term deposits and flexible demand deposit accounts, and manage everything with one login.

Register for a free Raisin Account today to get started.

*https://www.gov.ie/ga/an-roinn-airgeadais/preaseisiuinti/minister-mcgrath-welcomes-state-savings-interest-rate-increases-2/