The National Treasury Management Agency has reduced the interest rates offered on State savings products.

The reductions, which come into effect immediately, only affect savers at An Post who make purchases from today.

The six-year instalment savings rate falls from 14% to 10%.

The ten-year national solidarity bond rate goes from 35% to 30%.

The four-year version of that bond will see a new fixed interest rate of 6%, down 2%.

The rate for the five and a half year savings certificate is to be reduced from 11% to 10%.

The fixed interest rate total return for customers on the three-year savings bond offered by the NTMA/An Post is remaining at 4%.

It was speculated that these changes might happen in the wake of the increase in DIRT tax in the Budget.

This made savings products at An Post more attractive than the banks.

To compensate the NTMA was expected to reduce the interest rate for new savers for certain products at An Post.