Bonds

insinkerator

Just wanted to get this straight.

So lets say i have €1,000 sitting in the bank, lump sum.

Its too small to invest in a savings account, and i wont be adding monthly either. I dont want to buy shares.

I can buy 1,000 worth of bonds @6.25 each. I get entered into draws, blah blah blah. And then in 3 months time, i can get the 1,000 euro back, with 7 days notice. No risk, no administraton fee?

Is there anything else on offer that would better suit me?

MrMatisse

A deposit account.

WooPeeA

Try some stable investment fund.

Fol20

Government savings bonds maybe

batista

Ive looked into the government bond thing - obviously given the absolute perilous state of the irish economy and the amount of debt that we are in you would think the government would be looking for people to buy government bonds thus giving them easy access to capital for a number of years. Problem is trying to understand the whole buying of government bonds is a nightmare.

Does anyone know anything about government bonds and is the return on them better than say a deposit account?

RoadKillTs

I can buy 1,000 worth of bonds @6.25 each. I get entered into draws, blah blah blah. And then in 3 months time, i can get the 1,000 euro back, with 7 days notice. No risk, no administraton fee?

Nope.

Does anyone know anything about government bonds and is the return on them better than say a deposit account?

Return would be better but I'd say you would need more a lot more than a grand.

You can get 3.25% with Irish Nationwide

Prizebonds are a good idea imo especially as interest rates are so low these days.

Thargor

As an experiment 6 months ago I put €10k into Prize Bonds to see what would happen, so far 3 cheques for 75 Euro have arrived in the post which is pretty much the same return as a savings account I suppose, I returned all 3 cheques to be converted into more bonds when they arrive. Dont know if Id reccomend them or not, I suppose it has been pretty entertaining the times Ive opened the envelope and you see "Please Find Your Cheque Enclosed" and you dont know if its going to be €75 or €75k, and the fact that you're playing a lottery for free multiple times (1600 times in my case) every week is good to know, I dont know whether to leave the money there or not to be honest, Im thinking of cashing them in now and putting them into one of the Rabofunds from the other thread to see what happens there if I could get any reccomendations from anyone on them.

Soarer

I didn't want to start a new thread to ask my question, so I'm gonna jump into this one!

We're currently saving for a house, and have €40k saved. We're also saving a further €2500 per month until the house is built...hopefully in 6-7 months time.

Would prize bonds be a good option for us, given the short term nature of our saving?

I'm not very good at maths/statistics, but using the prize bonds webiste stat of "if you have €1000 invested, you've a 4.2/1 chance of winning a cash prize in a 12 month period"...
Since we're only investing for 6 months, our odds per €1000 invested go out to 8.4/1, or 11.9%.
But since we're putting in €40k upfront, our odds come way in to 0.21/1, or 476%! :eek:

Now I know the draw is completely random, and there's a chance that we'll win f all, but those odds do seem fairly favourable, no?!

If I got all the above wrong, I apologise.:o
But maybe someone could recommend a better short-term investment for us? How much would we need to win in the prize bonds to match/better a 6 month investment in a savings account?

Thanks guys.

RoadKillTs

I started buying prize-bonds myself this year. I think they are a good idea given the low rates from banks these days.

With 40k worth you would have a very good chance but as you said it's random so there are no guarantees.

Ulsterbank have a savings acc whereby the interest is added monthly so you could take the money out after 6/7 months without losing out.

Link

Soarer

Thanks RoadKillTs.

Are my figures correct above? Like I said, I'm not very good at stats and stuff!:o

RoadKillTs

Im not sure tbh.

There is a thread on AAM about this.

Link