NTMA criticised over interest rate cuts
The National Treasury Management Agency (NTMA) is being criticised for cutting interest rates and perks for An Post savings schemes.
The cuts of up to 40% came into effect yesterday and will affect new fixed savings bonds.
The lowered returns on investments at An Post come following pressure from the banks who argued that they could not compete with the State schemes.
Charlie Weston, Personal Finance Correspondent with the Irish Independent, told Newstalk that banks argued that they were losing out on customers to An Post.
"Basically the banks are saying (that) we can't gather in deposits because these state savings schemes - many of them are tax-free - offer a very good interest rate and they're tax free so they're very attractive to people" he said.
"The banks are saying well 'you own us, you want us to get back to being commercial and making money again - we can't compete with these state schemes; which I suppose is a fair argument'.
"On the other hand, it's a pity to see these schemes destroyed because they're a very good option for consumers" he added.
