Ministry of Finance Announces August Treasury Bond Interest Rates

The Polish Ministry of Finance has confirmed that the interest rates on retail treasury bonds offered in August will remain unchanged across all maturities.

Interest Rates Maintained for August

The Ministry of Finance announced on Monday that the interest rates for retail treasury bonds offered in August will remain at their previous levels. Deputy Finance Minister Jurand Drop stated that savings bond interest rates are left unchanged for August, noting that longer maturity periods correspond to higher interest rates in the initial interest period and higher margins in subsequent interest periods.

The Ministry specified that the interest rate for one-year variable-rate bonds based on the NBP reference rate will be 4 percent, while two-year bonds will offer 4.15 percent in the first monthly interest period. Fixed-rate 3-month bonds will yield 2 percent annually, and 3-year bonds will offer 4.4 percent.

The interest rate for 4-year bonds in the first annual interest period will be 4.75 percent, and 10-year bonds will stand at 5.35 percent. Meanwhile, 6- and 12-year family bonds dedicated to beneficiaries of the 800 Plus program will carry interest rates of 5 percent and 5.6 percent, respectively, in their first annual interest period.

Calculation Mechanism for Savings Bonds

The Ministry of Finance also explained how the interest on savings bonds is calculated. One-year and two-year bond rates change monthly, calculated as the sum of the National Bank of Poland reference rate and a margin—which for August instruments is set at 0 percent for one-year bonds and 0.15 percent for two-year bonds.

The interest rate for 4-year bonds changes annually, determined by the sum of the inflation rate from the past 12 months and an unchanged margin of 1.5 percent. The same mechanism applies to 10-year bonds with a 2 percent margin, as well as family bonds, which feature a 2 percent margin for 6-year bonds and a 2.5 percent margin for 12-year bonds.

New Bond Issue via Exchange

Starting July 28, a new issue of treasury bonds can be purchased through an exchange. Holders of bonds maturing in August can utilize the option to convert funds from their redemption into new savings bonds.

During the exchange, purchases are executed at a lower price, enabling investors to secure an additional profit as new bonds are acquired at 99.90 PLN per unit, excluding 3-month OTS bonds.