€25k invested in prize bonds

Atlantis50

It appears as if "sources" are indicating that Prize Bonds will be among the NTMA products getting an increase:

Government sources also say that Mr McGrath is likely to approve a move to increase the rates paid to depositors in State-backed savings schemes, if the National Treasury Management Agency – which manages the State’s cash – proposes such a move next week.

Increasing the interest rates on State savings schemes managed by An Post would immediately increase competition with the banks for deposits, likely prompting a response by the banks. The State also offers prize bonds as a form of saving, though the interest rates are minimal at 0.35 per cent and were last revised in 2017.

Sources indicated that Mr McGrath also favours a revision to these rates.

https://www.irishtimes.com/ireland/social-affairs/2023/08/22/banks-to-come-under-greater-pressure-to-raise-interest-rates-for-depositors/

2017 is incorrect, was 2021 when the rate was cut from 0.5 to 0.35%.

Any bets on what an increase would look like? Going back to 0.5% would be an insult.

Another piece in the IT this morning highlighting NTMA product rates, with a section on PBs showing historical rates and comparing to the UK Premium Bond rates (subscriber only):

https://www.irishtimes.com/your-money/2023/08/22/its-not-just-the-banks-that-are-failing-savers-the-state-is-too/

dxhound2005

Congratulations!

Your saved Prize Bond numbers have won €100.00 since you last logged in.

Prize Value Winning Prize Bond Location

€50.00 MC932920 Louth

€50.00 MC936156 Louth

A MC932 bond also won €50 in January.

pbwinner

Winnings on 25th August 2023: €0

Last win 7th July 2023: €50

Total winnings on €25k from Feb 2011 to date: €3300

2011: €75 x 4 = €300

2012: €75 x 6 = €450

2013: €50 x 12 = €600

2014: €50 x 9 = €450

2015: €50 x 5 = €250

2016: €50 x 5 = €250

2017: €50 x 4 = €200

2018: €50 x 2 = €100

2019: €50 x 6 = €300

2020: €50 x 5 = €250

2021: €50 x 1 = €50

2022: €50 x 1 = €50

2023: €50 x 1 = €50

dxhound2005

The €50K has gone to Cork two weeks in a row.

25 August

"ONE lucky person in Cork is €50,000 richer today, after they won this week's Prize Bond star prize.

The lucky bond, number AIA633395, was purchased in Cork county in 2017."

18 August

"This week's Prize Bond Star Prize of €50,000 goes to lucky Prize Bond number BEA 472202 held in County Cork.

The lucky bond was purchased in 2023."

cobham

Just recently bought some Prize bonds. Do you get a notification when you log on to website if you have won? email notification?

Hibernicis

If you have a state savings online account https://www.statesavings.ie/your-savings/login and if your prize bonds are registered (they should be if you purchased them online) you should receive an e-mail notification of any winnings. Check that your email address is correct and that notifications are enabled (under settings). You will also see a notification when you log on, and the prize winning bonds will be recorded on the holdings page, prizes tab.

dxhound2005

August count, the same 12 million bonds BEE to BEP in each of the four draws. Not counting 1 x €500 won by these bonds.

Friday 04. 84 prizes. Highest BEH 10, lowest BEJ 4.

Friday 11. 71. BEE & BEN 10 each. BEK 3.

Friday 18. 77. BEJ 13. BEM 2.

Friday 25. 58. BEP 9. BEF & BEO 3 each.

Highest overall BEH 32 (10,7,10,5). Lowest BEK 16 (7,3,4,2) & BEM 16 (4,4,2,6).

48 million bonds won 290 prizes, average per million 6.042. x 52 x €50 = €15708.33. Divided by 62.5 to get what €100K would win in a year with the same luck equals €251.33. Nearest to 5 x €50.

tuisginideach

It's been a long time .... €50

Atlantis50

Good news effective October 1st:

The NTMA also said the variable rate used to calculate the total prize fund is increasing from 0.35% to 1% of the total value of Prize Bonds, while the prize fund is almost trebling in size and prizes remain tax free.

Under the new prize structure, a top monthly prize of €500,000 will be offered, in the last weekly draw of every calendar month, compared to the previous top monthly prize of €250,000.

A top weekly prize of €50,000 will be available in every weekly draw from October 1, while each week there will be 20 prizes of €1,000 and 20 prizes of €500, compared to 10 prizes of €1,000 and 10 prizes of €500.

The remaining weekly prize fund will be awarded in €75 prizes, which is an increase in the previous minimum prize of €50.

Overall, the number of prizes is expected to double to half a million a year, the NTMA said.

https://www.rte.ie/news/business/2023/0901/1402840-interest-on-state-savings-to-rise/

POBox19

Too little too late. The rate should be 3%.

Hibernicis

NTMA press release here:

https://www.ntma.ie/news/ntma-increases-rates-for-state-savings-products

Good that the bulk of the increase in the PB fun will be directed towards the small prizes.

Changes effective from 1st October 2023

Mantis Toboggan

Did I see BOI offering 3%? Wonder what the difference is when you factor in DIRT.

Hibernicis

https://www.boards.ie/discussion/comment/121054802#Comment_121054802

While we would all like more, as of today it’s the best rate available for a demand deposit account in the Irish market by quite a distance.

Prize Bonds: 1%

AIB demand deposit account and EBS instant access account rate is 0.25 per cent

BOI Demand Deposit interest rate is 0.10%

PTSB still at .01%

Nody

https://www.boards.ie/discussion/comment/121054994#Comment_121054994

Eeh, bunq gives you 1.56% with unlimited withdrawls from the first euro at no cost and is easily accessible from the Irish market and covered under the bank guarantee. Not a referee link or anything; only saying that 1% or more is not accessible to your average Irish person is not true.

Hibernicis

Correct but BUNQ is liable for 33% DIRT and possibly 4% PRSI, State Savings aren’t. Plus you have to declare BUNQ interest on your tax return. Plus you have to deal with BUNQ which brings its own challenges and issues.

Daddy Ireland

So if I invest 100k in prize bonds I can hope to get 1k in prize money after a year. Is that right ?

notsocutehoor

https://www.boards.ie/discussion/comment/121055171#Comment_121055171

No that is incorrect really, if you invest 100k into prize bonds then after 1 year you might have got a million, zero, or anything in between.

dxhound2005

https://www.boards.ie/discussion/comment/121055171#Comment_121055171

Hope has nothing to do with it. At present average luck will get you €250, so probably €750 from October. Or €675 or €825 depending on the allocation of the prize fund to the big prizes versus the €75 prizes. But €100K is far too tiny an amount to guarantee anything.

We can do a rough calculation for the average luck figure when we get the first draw with the 1% rate.

Hibernicis

In calculating the likely return on prize bonds it’s best to discount the large prizes as the chances of winning these is pretty remote. This leaves the €75 prizes. Based on a total PB fund of €4.6bn and the new prize structure and nominal rate, a quick estimate is that with average luck a holding of €100k is likely to return €858pa. This is free of DIRT, so equivalent to €1,300 from a bank deposit a/c. Your luck may be better or worse than the average.

if you want more certainty around the rate of return, there are more suitable products, especially if you are prepared to lock your money up in term based products. If you want capital security, a likely reasonable return, the remote possibility of a big win and the fun of checking for winnings weekly then prize bonds are an option worth considering.

jaffa20

Only just purchased a 10 year bond this year. I guess it's worth cashing in and reinvesting come October 2023. Maybe will split it between a 5 year and 10 year. Bit of a pain.

scotchy

€50 win today.😎

.

dxhound2005

https://www.boards.ie/discussion/comment/121055697#Comment_121055697

If the early years returns are as poor in the new product, I would not tie up my money for 10 years.

https://www.statesavings.ie/our-products/10-year-national-solidarity-bond

Returns based on €1,000 investment. Year 1 €1,000. Year 2 €1,002.50. Year 3 €1,005. Year 4 €1,010.

pbwinner

Winnings on 1st September 2023: €0

Last win 7th July 2023: €50

Total winnings on €25k from Feb 2011 to date: €3300

2011: €75 x 4 = €300

2012: €75 x 6 = €450

2013: €50 x 12 = €600

2014: €50 x 9 = €450

2015: €50 x 5 = €250

2016: €50 x 5 = €250

2017: €50 x 4 = €200

2018: €50 x 2 = €100

2019: €50 x 6 = €300

2020: €50 x 5 = €250

2021: €50 x 1 = €50

2022: €50 x 1 = €50

2023: €50 x 1 = €50

Hibernicis

https://www.boards.ie/discussion/comment/121055732#Comment_121055732

Same. i was wondering about asking them to hold on to it for a month and give me one of the new €75 prizes instead.

dxhound2005

€50 for me today as well.

The number of €50 prizes in the September draws is 4,764 down from 4,791 in August. The newest bond to win on 04 August was BEQ 329790, newest 01 September BEV 275668. Sales of around €30.9 million.

dxhound2005

A slightly interesting fact. Since the year 2000 (I didn't look back further) this is the first time the interest rate will be exactly 1%.

Hibernicis

https://www.boards.ie/discussion/comment/121056226#Comment_121056226

It will be interesting to see the number of €75 prizes per week. I’m estimating that it will be somewhere just south of 10,000

Hibernicis

https://www.boards.ie/discussion/comment/121055697#Comment_121055697

I’m in a similar position with a number of 10 year bonds purchased earlier this year. I will definitely cash these in, probably sooner rather than later as I would guess that State Savings will be inundated with encashment requests over the coming weeks. I will probably lob it all back into 10 year bonds, on the basis that I wont need this money in the next 5 years, and if I need any of it in 6, 7 or 8 years then having it in the ten year bond will give a better return, even though I am cashing in early.

dxhound2005

https://www.boards.ie/discussion/comment/121056283#Comment_121056283

My guess is 8,950 based on very rough calculations. I thought they would try to increase the percentage given to big prizes slightly, seeing as it has been eroded for years. But even the effect of 12 x €500K prizes will probably be negated by the €75 prizes.

Hibernicis

Poster Duke of Marmalade has updated his Prize Bond winnings spreadsheet over on AAM to take account of the new rates and the new prize structure announced today. For anybody interested in working out their chances of winning or other analysis it’s worth a look.

https://www.askaboutmoney.com/threads/ntma-increases-rates-for-state-savings-products.232387/page-2#post-1838877