Michael McGrath (Cork South Central, Fianna Fail)
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112. To ask the Minister for Finance if representations have been made by commercial banks urging him to request that An Post reduce their deposit interest rates; and if he will make a statement on the matter. [23570/13]

Michael Noonan (Limerick City, Fine Gael)
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As I indicated to the Deputy in a PQ reply in January of this year, officials of my Department regularly engage with the commercial banks on a wide range of issues, including the cost of funding.

The NTMA is responsible for the State Savings schemes which includes Savings Certificates, Savings Bonds, Prize Bonds, the National Solidarity Bond and Instalment Savings, as well as the Deposit Accounts such as the Ordinary Deposit Account and the Deposit Account Plus which are managed on behalf of the NTMA by An Post. The NTMA keeps the suite of State Savings products and the interest rates paid on them under constant review to ensure that the products remain competitive and attractive to retail investors, while balancing the funding requirements and financing costs of the State.

In December 2012, my Department received a submission from the NTMA, for my approval, to reduce the interest rates on State Savings products (including deposit interest rates), thereby lowering the cost of funding for the State for new funds. I approved the new rates proposed in the light of trends in interest rates in the domestic market generally.