Interest rates on Prize Bonds to be reduced

The interest rates on Prize Bonds are to be reduced.

The Prize Bond Company is a joint venture between Killorglin-based Fexco and An Post, managed by the National Treasury Management Agency.

Draws are held every week, with a €1 million prize awarded twice a year.

The NTMA says that, from next month, changes to draw structures and a reduction in the interest rate applied to generate funds will come into effect for Prize Bond draws.

It says the new rate – 0.35% down from 0.50% - reflects the reductions in interest rates in the savings market and in sovereign bond yields generally.