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- Thread starter Raging Bull
- Start date

Prize Bonds are not an investment.

They're a ticket for a raffle, with long odds on winning anything significant, that's redeemable at the nominal face value which will erode in real terms over time.

No harm in having a few (I do) but they shouldn't generally be a significant part of your overall "portfolio".

What is your investment timeframe, when will you need the money and for what?

Do you have any debts, especially non mortgage debts?

Paying them down may be a better idea/return.

Are you investing in a pension?

What's your overall financial/personal situation?

They're a ticket for a raffle, with long odds on winning anything significant, that's redeemable at the nominal face value which will erode in real terms over time.

No harm in having a few (I do) but they shouldn't generally be a significant part of your overall "portfolio".

What is your investment timeframe, when will you need the money and for what?

Do you have any debts, especially non mortgage debts?

Paying them down may be a better idea/return.

Are you investing in a pension?

What's your overall financial/personal situation?

Last edited:

I pay 2% of my salary into a pension, employer pays 8%, can increase this to 4%.

I hace €18k in an investment fund and the rest on deposit. The term investment perhaps wasn’t the right word

- Messages
- 3,911

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

If you buy Prize Bonds then over the course of 1 year the following are your possibilities (all returns tax free):

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

A tad better than bank deposits IMHO

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 additionyou have the "€55 worth" of "lotto" chances of winning prizes up to €250k.

How do prize bonds work? Are prize bonds a good investment?

moneysmart.ie

- Messages
- 3,911

I attach my spreadsheet which I hope is self explanatory. I have changed the name from "lotto" wins to "super" wins.Can you explain how you arrived at the percentages above and what the "lotto" reference means please? Thanks.

Thanks @Duke of Marmalade - I'll have a read of that later.

- Messages
- 3,911

## Money Smart • Are Prize Bonds for Prize Idiots?

How do prize bonds work? Are prize bonds a good investment?moneysmart.ie

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.

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- 15

how do prize bonds work....

you need to have cash with state first of all?

you need to have cash with state first of all?

Yes you must buy them first, like buying a lottery ticket in some ways except you get your money back whether you win or lose! They cost 6.25 each so you buy as many as you want, they are entered into regular draws and small chance of winning but better than nothing! Then when you are sick of them or need the money you just apply to cash them in and get it back.how do prize bonds work....

you need to have cash with state first of all?

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- 817

I think that you can exceed the threshold as you are allowed to add winnings from bonds. e.g you hold €250K and win €1K. You may hold €251 K.

If only...............

That's correct, yes ...I think that you can exceed the threshold as you are allowed to add winnings from bonds. e.g you hold €250K and win €1K. You may hold €251 K.

Surprisingly, they explain how they work here...how do prize bonds work....

you need to have cash with state first of all?

Be in with a chance to win, each and every week with thousands of Tax Free Prizes including a quarterly jackpot prize of €250,000

www.statesavings.ie

0.35% according to the State Savings Prize Bonds FAQ.Ignoring the prizes in excess of €50 the "notional" rate of return is 0.40%.

Browse and search our help articles, download an application for or a brochure

www.statesavings.ie

- Messages
- 3,911

I must have posted that before the last rate change. The current percentage is .35% overall of which c. .25% is paid in €50 prizes.0.35% according to the State Savings Prize Bonds FAQ.

## Ireland State Savings - Help & Support | State Savings

Browse and search our help articles, download an application for or a brochurewww.statesavings.ie