They really shouldn't - and shouldn't be allowed to - mention Prize Bonds in this way as it's totally misleading.Prize Bonds at .35%
What's misleading? The expected return on a Prize Bond is 0.35%.mention Prize Bonds in this way as it's totally misleading.
That's why they now increasing it because the bond markets are going to be demanding even higher interest rates from government bonds in the light of the banking crisis lately .Will be interesting to see the interest rates when the ntma next looks to raise more money from selling bondsThe government bond market is demanding 30 percent nominal return for placing money with the Irish government for 10 years. These products are offering Joe Soap 16 percent over 10 years. Take what you will from that.
Very few people are going to get that.What's misleading? The expected return on a Prize Bond is 0.35%.
They don't call it a return. They state the rate of the total prize fund, which is 0.35%Very few people are going to get that.
A tiny few will get a lot more.
To cite it as a "return" is completely misleading.
An Post describe it as: "Prize Fund rate currently 0.35%" which is not misleading.To cite it as a "return" is completely misleading.
No, they're not. The "banking crisis" has reduced yields on 'safe' bonds.the bond markets are going to be demanding even higher interest rates from government bonds in the light of the banking crisis lately .
The attached spreadsheet gives the statistical distribution of the annual prizes you may expect for your input number of bonds. The greater the number of bonds the narrower the range of outcomes by the law of large numbers or indeed the CLT.An Post describe it as: "Prize Fund rate currently 0.35%" which is not misleading.
Otherwise is indeed an expected return due to the fact that (via central limit theorem) if you hold enough prize bonds and wait long enough you will get 0.35% p/a on your capital invested.
Probably a temporary phenomenon to put money somewhere, I bet irish government bond interest rates will be higher unless the ECB is forced to change tact on interest rates.No, they're not. The "banking crisis" has reduced yields on 'safe' bonds.
Absolutely NOTHING to do with the recent "banking crisis".I remember the close to 0% bonds the ntma issued in 2020 and 2021, they were also ultra safe but now are under water due to the big interest rate rises since. They were not wise investments, the same with all government bonds issued in 2020 they are all now under water, some big time
Yes indeed very few will get 0.35%. But 0.25% of that is paid out in €50 prizes. See my spreadsheet attached to an earlier post.Very few people are going to get that.
A tiny few will get a lot more.
To cite it as a "return" is completely misleading.
At this point it is a tax on ignorance.All the same it is disappointing that the rate has not been increased.
What “better elsewhere” options are there ?, that are guaranteed, Risk free, DIRT free, charges free, and easily accesible.The ten year bond, while you could definitely do better elsewhere, could be a useful product for someone looking to retire early. Say you are 50 now, and want to retire at 60. You could buy 10k each year for the next seven years, and they would mature each year from 60 -67, bridging that gap with an annual income until the state pension kicks in. Obviously more ways to skin a cat, and probably better ways, but that would be very simple and risk free way to do it.
What “better elsewhere” options are there ?, that are guaranteed, Risk free, DIRT free, charges free, and easily accesible.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?