If you deposit this in a notice deposit account with, say, BoI you will earn €16.50 p.a. subject to DIRT.Are Prize Bonds still a good option? Have €55k in KBC to invest
Can you explain how you arrived at the percentages above and what the "lotto" reference means please? Thanks.6% chance you will get ziddly squat
18% chance 1 prize of €50
24% chance 2 prizes worth €100
22% chance 3 prizes worth €150
15% chance 4 prizes worth €200
8% chance 5 prizes worth €250
7% chance more than this in €50 prizes
In addition you have the "€55 worth" of "lotto" chances of winning prizes up to €250k.
For €55,000 the chances of winning some prize, albeit most likely a €50 prize but still beating the pants off deposits, are 94%.Money smart said:The odds of winning a prize (and thus earning ‘interest’) are pretty remote.
Ignoring the prizes in excess of €50 the "notional" rate of return is 0.40%.This gross 0.5% notional rate of return is skewed higher by the small number of very large prizes and is unrepresentative of probable returns.
Well yes, €10k has a 60% chance of paying Nil. The max joint holding of €500K has a 80% chance of earning more than 0.2% tax free. To me it is a better option than bank deposits but obviously Money Smart would prefer you followed this advice:It is therefore necessary to put in a fairly substantial investment, in excess of €10,000, to get a reasonable return within a reasonable period of time.
Money Smart said:Do you want to gain a better return without taking crazy risks? Call me on 01 276 0006 or 086 850 8577.