State Savings rates are going up from 30 August

The new State Savings rates in full

The prize bond fund is also being boosted.

Ireland State Savings is the name for the products the NTMA offers to personal savers, and the money can be lodged with An Post.

From 30 August, the changes are as follows, as The Journal reported:

• 3-Year Savings Bonds: total return up from 4% to 6% (AER from 1.32% to 1.96%)
• 5-Year Savings Certificates: total return up from 9% to 12% (AER from 1.74% to 2.29%)
• 6-Year Instalment Savings: total return up from 10% to 13.5% (AER from 1.75% to 2.33%)
• 10-Year National Solidarity Bonds: total return up from 22% to 30% (AER from 2.01% to 2.66%)

The headline percentages are total returns over the full term rather than annual figures, which is why the ten-year bond can advertise 30%.

The number worth comparing is the AER, the official yearly interest rate for savings accounts and investments, because it takes compound interest into account.

Even after the increase, the annual equivalent rates top out at 2.66%, so this is a modest improvement rather than a windfall for anyone parking money for a decade.

Still, it is a rare piece of good news for Irish savers in a year dominated by the cost of living, and it arrives with the deposit market broadly flat.

Anyone weighing a State Savings product against a house deposit should also read up on the mortgage rules for first-time buyers.