Prize Bonds are looking attractive alternatives to deposits

Discussion in 'Deposits' started by Raging Bull, Oct 16, 2013.

  1. SoylentGreen

    SoylentGreen Frequent Poster

    Posts:
    355
    I have €210k of Prize Bonds. I win €50 about every 3rd week. Last week it was €100. I have never won anything bigger than this over the 3 years I have had them.
    I get a dividend four times a year from a pharmaceutical company of about 6%. I really should move my prize bond funds in to these shares as they have been paying this dividend for years. However the share price took a knock earlier this year when it was suggested that going forward this dividend may be at risk. They have begun to recover now and back above what I paid for them.
    I don't like keeping all my eggs in the one basket. Like Palerider says I live in hope that I might win one of the bigger prizes and it's a bit of fun as well.
    However when I see that dividend come through my letter box four times a year that will cover the price of a week away in the sun I wonder am I being foolish in hoping that a big win is just around the corner.
     
  2. dub_nerd

    dub_nerd Frequent Poster

    Posts:
    1,806
    Uh, yes you are. With your 6% dividend you would gain the equivalent of a €50k win every four years. You hold less than a hundredth of one percent of issued Prize Bonds. You'll win a €50k prize every three hundred years on average. You'll win a million every seven thousand years. If you built the passage graves at Newgrange with your last win, you're due another one any millennium now*.




    (* N.B. That was for rhetorical effect and way too optimistic. You still have a couple of thousand years to go).
     
    Zenith63, Janet, Norcop and 2 others like this.
  3. NOAH

    NOAH Frequent Poster

    Posts:
    775
    What has happened to prize bond payouts ie prizes, I have quite a few and was regularly getting €50.00 per week but since July 2018 only one prize!! The website changed around then as well, have the number of prizes decreased dramatically?
     
  4. dub_nerd

    dub_nerd Frequent Poster

    Posts:
    1,806
    Don't think it was specifically in July. Prize Bonds returns have been dropping for some time. Typical returns are a quarter of what they were four years ago.
     
    NOAH likes this.
  5. xoxoxo

    xoxoxo Frequent Poster

    Posts:
    97
    Have just short of €100k in prize kids and in the past 12 months i have won a grand total of €50 and that was back in December 2017. So nothing at all in 2018. I think it's time I ,poked for a better rthan turn on my money :mad:
     
  6. dub_nerd

    dub_nerd Frequent Poster

    Posts:
    1,806
    Last edited: Sep 9, 2018
    That does sound odd. Even at the current shoddy returns your most likely number of wins on €100k in a 12 month period is 6. You have a better than 90% chance of winning between 3 and 11 times. The chances of only a single win in 12 months are less than one in a hundred. Either you've been extraordinarily unlucky or there's something wrong. Here are the odds for different numbers of wins:

    [​IMG]
     
    Last edited: Sep 9, 2018
  7. Cervelo

    Cervelo Frequent Poster

    Posts:
    338
    One thing I feel that people forget about the Prize Bonds is the number of bonds chasing the prizes
    Last weeks draw had over 536 million bonds looking to win one of the 4437 prizes
    And every week there is on average an extra million bonds added to the draw but only around an extra 40 prizes are added every month

    Your lack of winnings is what the rest of us bond holders are experiencing, the past 12 months is the first time in 6 years that my winnings haven't beaten the prize fund rate
     
  8. Odea

    Odea Frequent Poster

    Posts:
    355
    I could purchase an apartment in Spain with the amount of money I have "invested" in Prize Bonds. It's very tempting to do this. At least the family could enjoy it. Not enjoying the returns on my Prize Bonds at the moment.
     
    Ravima likes this.
  9. xoxoxo

    xoxoxo Frequent Poster

    Posts:
    97
    I know! I had approx 75k worth and only brought up to the just under 100k Last January but really would expect a higher return. Must just be very unlucky as I can't figure anything else amiss - have bonds, are registered etc. Here's hoping I'll have a big win soon :)