State Savings Rates (incl. Prize Bonds) to Increase - Finally
- Thread starter Freelance
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podgerodge
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@Duke of Marmalade @Lightning @Freelance I'm having some brain fog here reading this. Can someone explain to me again why the statistical yield is 1.25% (because large prizes taken out?), and, on a holding of €100k 16 prizes of €100 is most likely outcome. Is that not most likely outcome of €1,600 in prizes giving 1.6%? And what is the 75 in the formula highlighted, is this related to the prize amount?
Explanation in plain english for those of us (i.e. me) that need some tlc on this
Duke of Marmalade
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Mea culpa
There were some trailing references to the old €75 pay-outs of which you spotted one.I think I have corrected it but please advise if you need further clarification.
The expected pay-out from "small prizes" remains at 1.18%
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redwood park
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Hi. FYI. We are an elderly couple and have €38,000 in Prize Bonds. (We need access to the money quickly in case one of us pops our clogs.)
We won 4 X €75 prizes since Aug 25.
We won 4 X €75 prizes since Aug 25.
Less than 0.8% return. You'd get much better than that even on deposit.
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I have had no end of issues and delays extracting my money from State Savings. Would not recommend.
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I'll second this, having had similar experiences on numerous occasions. It wouldn't stop me using State Savings Products, but when it comes to redeeming I always allow time for State Savings to toss a spanner or two into the works. Redemptions can take a week, but can also run to 5/6 weeks.
Just a word of warning based on my experience. Assuming that the bonds are held in your joint names, redeeming them when one of you passes away will take a considerable amount of paperwork and time. Further info here.
Again, assuming that your current bonds are held in your joint names, you could consider splitting them into two individual holdings of €19,000 each. These can be redeemed online which is usually (but not always) a lot faster. When required, the survivor could them redeem the €19,000 held in their own name "quickly" using the online process, while the claim in relation to the deceased's holding goes through the hoops.
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Duke of Marmalade
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I attach the latest and hopefully correct version of the spreadsheet. Earlier versions have been deleted. Thanks to @podgerodge and @Freelance for pointing out errors. I don't think the substantive message has changed. An increase from 1% to 1.5% when wholesale rates have increased by c.3% is a bit of a disgrace.
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Have State savings and prize bonds become more attractive?
The National Treasury Management Agency has recent;y increased the interest rates on offer on tax-free savings
Paywall.
I took out a few 10 year bonds in the last 12 months at the 22% rate, cashed them all in last week. and reinvested in 10 year bonds at 30%, using the state saving online facility.
N26 bank account was very handy as allows 30k per day card limit, which is way higher than the other banks, subject to a calendar month limit of 80k.
N26 bank account was very handy as allows 30k per day card limit, which is way higher than the other banks, subject to a calendar month limit of 80k.
Hi Fayf, Really ? So you did not have to cash them in, get a cheque sent to you and then back into the Post Office again to re-invest in the new issue ? Wish I knew that .. I'm in the process of trying to get the cheques posted out to me in order to re-invest. Its a pity they did not mention that to me as an option. Just signed up to their online portal now .. Bit late :-(
That's a decent deposit rate, but over a 10 year period would you not be better investing the money?
DublinAnthony45
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10 years locked away to get 30 % , not high enough for me to lock away circa €150k
i know it would be worth €195k at maturity , but 10 years no way
i know it would be worth €195k at maturity , but 10 years no way
charlie007
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Not actually locked away.
You can cash in at any time although the interest is heavily back loaded. (see table below)
You can also just cash in a percentage and the remainder enjoys the full original T&Cs.
You can cash in at any time although the interest is heavily back loaded. (see table below)
You can also just cash in a percentage and the remainder enjoys the full original T&Cs.
| Anniversary of the Registration Date on or after which redemption occurs | Total Cumulative Bonus Percentage | Example of return (principal and bonus) on €1,000 Principal Amount |
| 1st | 0.00% | €1,000 |
| 2nd | 1.25% | €1,012.50 |
| 3rd | 2.50% | €1,025 |
| 4th | 3.50% | €1,035 |
| 5th | 6.00% | €1,060 |
| 6th | 8.50% | €1,085 |
| 7th | 10.50% | €1,105 |
| 8th | 15.00% | €1,150 |
| 9th | 22.00% | €1,220 |
| 10th | 30.00% | €1,300 |
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Yep. 2.66% AER if held for the full 10 years with inflation at 3.4% at the last count means the risk of losing real value is significant.