An Post State Savings Account
An Post is an agent of NTMA that offers the state savings scheme which provides savers with risk-free and relatively high rate of interest earning needs. All the state savings scheme comes with sovereign guarantee on depositors’ money and some of the products offer tax benefits on the interest earned on their investment. NTMA offers a selection of these online banking savings products in Ireland Although State Savings account pays a competitive APR, keen savers can find even higher savings rates elsewhere.
An Post as the entity authorised to receive deposits and administer the related accounts (Post Office Savings Bank Acts 1861 to 1958 as amended and Post Office Savings Bank Regulations 1921 as amended).An Post acts as an agent of the NTMA in relation to the sale and administration of State Savings products (except Prize Bonds).
The Prize Bond Company, a joint venture between An Post and Fexco, acts as an agent of the NTMA in relation to the operation of the Prize Bond Scheme. An Post is responsible for the accounting, marketing and the conduct of the draw, the administration is carried out by Fexco.
Coins to Asset has analysed seven state savings schemes offered by NTMA via An Post Office as well as interest rates earned on the investment to help you make the best financial decisions for you.
List of An Post State Savings Account Scheme
The savings products provided by An Post is one of the government-backed schemes and offers different interest rates on both individual and children accounts. Here are the features and interest rates on post office saving schemes.
| Account Name | AER % | Total Return % | Tax Free | Minimum | Maximum |
|---|---|---|---|---|---|
|
10 year – National Solidarity Bond
|
2.01% |
22% |
Yes |
€50 |
€120,000 |
|
5 year – Savings Certificate |
1.74% |
9% |
Yes |
€50 |
€120,000 |
|
3 year – Savings Bond |
1.32% |
4% |
Yes |
€50 |
€120,000 |
|
6 year – Instalment Savings |
1.75% |
10% |
Yes |
€25/mth |
€1,000/mth |
|
6 year – Childcare plus |
1.75% |
10% |
Yes |
€25/mth |
€1,000/mth |
|
Deposit account – book based |
0.75% |
0.75% |
No |
€0.01 |
€250,000 |
|
Prize Bonds |
1.00% |
1.00% |
Yes |
€25 |
€250,000 |
National Solidarity Bond
National Solidarity Bond: This is a fixed rate savings bond account type where you can save a lump sum for a long period. This 10 Year National Solidarity Bond is a secure and straight forward and offers the highest return of our products. New Customers may purchase at the Post Office or by post. Existing customers may also purchase online or by phone Application forms can be downloaded from the State Savings Website or at the nearest An post office. Investment: A minimum investment of €50 up to maximum €120,000 per individual per issue is required to open an account . Withdrawal: You can access and withdraw your initial investment and any interest earned with 7 days notice. Repayment directly into your bank account Return on Investment: The product offers a tax free total interest rate of 22.0% after 10 years. The interest rate is calculated at the end of each financial year, and is accordingly credited to an account. There are no fees, charges or commissions, the risk level is low to nil and you are able to Register, view and manage your holdings online with State Savings Online
| Year | % Tax Free | End Value | AER% |
|---|---|---|---|
|
Year 1 |
0.00% |
€1000 |
0.00% |
|
Year 2 |
1.00% |
€1010 |
0.50% |
|
Year 3 |
2.00% |
€1020 |
0.66% |
|
Year 4 |
3.00% |
€1030 |
0.74% |
|
Year 5 |
6.00% |
€1060 |
1.17% |
|
Year 6 |
8.00% |
€1080 |
1.29% |
|
Year 7 |
10% |
€1100 |
1.37% |
|
Year 8 |
13% |
€1130 |
1.54% |
|
Year 9 |
16% |
€1160 |
1.66% |
|
Year 10 |
22% |
€1220 |
2.01% |
Savings Certificate
Savings certificate is a type of savings product offered by some governments or postal services that pays a fixed rate of interest over a specified term. State Savings offers 5 year savings certificates with a total return of 9% and an annual equivalent rate (AER) of 1.74%. The minimum investment is €50 and the maximum is €120,000 per individual per issue. avings certificate is issued by post for each purchase, containing details such as value, certificate number, allocation date and registered holder name and address,
| Year | % Tax Free | End Value | AER% |
|---|---|---|---|
|
Year 1 |
0.00% |
€1000 |
0.00% |
|
Year 2 |
1.50% |
€1015 |
0.75% |
|
Year 3 |
2.50% |
€1025 |
0.83% |
|
Year 4 |
4.50% |
€1045 |
1.11% |
|
Year 5 |
9.00% |
€1090 |
1.74% |
Savings Bond
Anpost savings bond is a type of State Savings product that offers a fixed-rate total return over a specified term. the 3-year Savings Bond (Issue 18) offers a 4% total return (AER 1.32%)
| Year | % Tax Free | End Value | AER% |
|---|---|---|---|
|
Year 1 |
0.00% |
€1000 |
0.00% |
|
Year 2 |
2.00% |
€1020 |
1.00% |
|
Year 3 |
4.00% |
€1040 |
1.32% |
Instalment Savings and Childcare Plus Savings
Both products allows savers to put away a fixed amount each month for a period of 12 months, which is the contribution period. At the end of the contribution period your accumulated savings earn interest for 5 years of interest-bearing period. The product currently pays a total return of 10% – AER 1.75%. The term of the product is 6 years from the date of lodgement of the first monthly instalment.
| Year | % Total Return | AER % | End Value |
|---|---|---|---|
|
Year 1 |
|
|
|
|
Year 2 |
0.00% |
0.00% |
€1000 |
|
Year 3 |
1.50% |
0.60% |
€1015 |
|
Year 4 |
2.50% |
0.71% |
€1025 |
|
Year 5 |
6.00% |
1.30% |
€1060 |
|
Year 6 |
10.00% |
1.75% |
€1100 |
Deposit Account Book Based
An Post Deposit Account Book is a type of savings account offered by An Post, the Irish postal service. It is a book based account, which means that customers receive a physical book where their transactions are recorded, instead of an online or electronic statement. Customers can deposit and withdraw money at any post office using their book, without the need for a card or PIN. The account has no fees or charges, and pays a variable interest rate on the balance. The account is suitable for customers who want a simple and secure way to save money, and who prefer to manage their finances in person rather than online.
Prize Bonds
An Post Prize Bonds are a type of savings product offered by An Post, the Irish postal service. They are different from other savings products because they do not pay interest or dividends, but instead enter the bond holders into regular prize draws. The prize draws are held every week, and the prizes range from €50 to €1 million. There is also a €1 million prize draw four times a year. The bonds are backed by the Irish government, so the capital is guaranteed and can be cashed in at any time after the first 90 days of purchase. The bonds cost €6.25 each, and the minimum purchase is four bonds (€25). The maximum holding per person is €250,000. The bonds are tax-free in Ireland, but may be subject to tax in other jurisdictions depending on the residency status of the bond holder.
Each individual Prize Bond you hold will be entered into the weekly prize draw. There are thousands of tax-free cash prizes every week. The more Prize Bonds you hold, the more chances you have of winning, The prizes are €500,000. The top prize in the last draw of every month is €500,000.
Weekly Prizes
- €50,000 x 1 prize
- €1,000 x 20 prizes
- €500 x 20 prizes
- €75 x All other prizes
How An Post State Savings Account Compares with Banks?
An Post offers a competitive rate on its state Savings account and there are no fees, charges or commission. Even when you make withdrawals early, you incur no penalty. If you’re looking for the highest savings yields on the market, compare the rates on best high interest savings accounts.
>> Click here for AIB Savings Account Rates
>> Click here for PTSB Savings Account Rates
>> Click here for Bank of Ireland Savings Account Rates
An Post State Savings vs Traditional Banks Savings Account
The advantages of An Post state savings compared to traditional bank savings are:
- State Savings scheme are backed by the Irish government, which means they are more secure and less likely to default or lose value in case of a financial crisis.
- State Savings may offer higher interest rates than traditional bank savings, especially for long-term deposits or bonds, as they are designed to encourage saving and investment in the public sector.
- State Savings may have lower fees and charges than traditional bank savings, as they are not subject to the same regulatory and operational costs as private banks.
- State Savings may have more flexible and convenient access options than traditional bank savings, such as online banking, mobile apps, post offices, or ATMs, as they are intended to serve a wider and more diverse customer base.
- State Savings may have more social and environmental benefits than traditional bank savings, as they support the development and provision of public services and infrastructure, such as health, education, transport, or energy.
Frequently Asked Questions
What is a State Savings?
At State Savings your money is placed directly with and protected by the Irish State. The repayment of all State Savings money is a direct and unconditional obligation of the Government of Ireland. Funds saved in State Savings Fixed Term products and Prize Bonds are placed in the Central Fund of the Exchequer and are used to fund Government expenditure. They form part of the National Debt of Ireland. State Savings form part of the National Debt of Ireland which is managed by the National Treasury Management Agency (NTMA) • When you save with State Savings you are placing your money directly with the Irish Government. The repayment of all State Savings money is a direct, unconditional obligation of the Irish Government. • Repayment of your money includes principal, interest and bonus payments if due.
Which is the best An Post State Savings Scheme?
The National Solidarity Bond account by An Post is a savings product that offers a fixed rate of return over 10 years. It is 100% State protected and tax free. You will earn a total return of 22% if you hold the bond to maturity, which is equivalent to an annual equivalent rate (AER) of 2.01%.
Which An Post Savings Scheme is best for Pensioners
Saving For Retirement - Whether you’re looking for a secure home for your retirement lump sum, or want to save in your retirement, State Savings has a suitable product for you. It can be a good option for pensioners who want to save money for their retirement and have a guaranteed income stream. It has flexible terms, as you can choose how long you want to save for, from one year to ten years, and you can withdraw your money at any time without penalty. It has tax advantages, as the interest is paid gross and is exempt from income tax and capital gains tax. It has no fees or charges, so you can keep all the interest you earn. It is backed by the government, so it is very safe and secure.
Some of the drawbacks of An Post State Savings are:
- It may not offer the best interest rate compared to other savings products, especially if the inflation rate is high or the market conditions change.
- It may not suit your personal circumstances or financial goals, as you may need more flexibility or access to your money, or you may want to invest in other assets that have higher returns or growth potential.
- It may not be enough to cover your living expenses or lifestyle needs in retirement, as you may face unexpected costs or emergencies, or you may want to enjoy more leisure activities or travel opportunities.
Is the State Savings Protected?
All of your savings, no matter how much you save with us, is protected by the Irish State. At State Savings there is no upper limit of the amount protected, and there is no expiry or end date for this protection. Also they are not affected by the performance of the financial markets or the solvency of the banks.
Lynda Unogu MBA IMC (CFA UK) PMP
Lynda holds an MBA from University College Dublin and worked previously in product roles within financial services and technology firms like Mastercard, Citi Bank and JP Morgan. She constantly seeks to apply her expertise in financial services to the field of personal finance with the goal of helping people navigate the complexities of the finance.
- An Post Website accessed on 10 February 2024
- Ireland State Savings website accessed on 12 February 2024
- Oireachtas.ie – State Savings Scheme accessed on 13 February 2024
