€25k invested in prize bonds

tuisginideach

dxhound2005 - is that due to a change in 'policy' or a reduction in the number of bonds?

FionnK86

I was thinking of purchasing 50 units (€312.5) and taking out before Xmas, as interest in deposit account is just .55% so I'd like to take a punt at this.

How much notice do they require to return money to account? I couldn't find anything at https://www.statesavings.ie/help-support/help-articles/prizebonds.

Also, does https://www.statesavings.ie/media/pdf/prizebonds_application_form?ext=.pdf need to be posted, or is there an email address? Trying to avoid going into shops for stamps.

Rulmeq

FionnK86 wrote: »

interest in deposit account is just .55%

Not wanting to tell you your business or anything, but if you're actually getting that rate, keep the money there. The average return on PBs is .33%, and you will really only see that if you have many 10s of thousands invested (based on the replies to this thread). Even with DIRT, you will be better off in the bank, as the interest is guaranteed (come back when they drop the rates below 0% and it will be worth it just to keep from losing money)

FionnK86

Rulmeq wrote: »

Not wanting to tell you your business or anything, but if you're actually getting that rate, keep the money there. The average return on PBs is .33%, and you will really only see that if you have many 10s of thousands invested (based on the replies to this thread). Even with DIRT, you will be better off in the bank, as the interest is guaranteed (come back when they drop the rates below 0% and it will be worth it just to keep from losing money)

No you're absolutely entitled to, I'll take advice from anyone that's been into this before.

It's more to have something to look forward to on a Friday morning, but I have seen that people have many multiples of that amount invested with small return.

Thanks for the heads up Rulmeq, best of luck next Friday if you're in it.

pbwinner

Starting like I mean to continue! :P
Happy new year everyone!

Winnings on 4th January 2021: €0
Last win 18th December 2020: €100
Total winnings on €25k from Feb 2011 to date: €3150
2011: €75 x 4 = €300
2012: €75 x 6 = €450
2013: €50 x 12 = €600
2014: €50 x 9 = €450
2015: €50 x 5 = €250
2016: €50 x 5 = €250
2017: €50 x 4 = €200
2018: €50 x 2 = €100
2019: €50 x 6 = €300
2020: €50 x 5 = €250
2021: €0

dxhound2005

tuisginideach wrote: »

dxhound2005 - is that due to a change in 'policy' or a reduction in the number of bonds?

It has to be a reduction in the number of bonds.

The value of the monthly prize fund is recalculated at the start of each calendar month by applying a variable percentage rate (currently 0.50%) to the value of all Prize Bonds outstanding at the end of the previous month.

Or some sort of mistake. The reduction does not make sense to me.

Sales Dec 2018 €40m, bonds cashed in €18m. Sales Dec 2019 €46m, bonds cashed in €16m. Number of €50 prizes each week Dec 2019 4940, January 2020 4998. That is verified data from the Annual Reports and the website.

My estimate of sales Dec 2020 €75m, from the newest bonds numbers to get a prize on 27 Nov 2020, and 04 Jan 2021. So the bonds cashed in during Dec would have to exceed that by a very large margin, to account for the reduction in the number of €50 prizes. Also, I am certain that every month since August 2017 when the 0.5% interest rate started, there has been an increase in the number of prizes, to reflect a nett inflow of funds each month.

dxhound2005

I just had another thought. It could be that they are going to increase the amount of money given to high value prizes during 2021. This would reduce the number of €50 prizes. Maybe another 2 €1m prizes during the year?

3. The prize structure
3.1 The value of the monthly prize fund is recalculated at the start of each calendar month by applying a variable percentage rate
(currently 0.50%) to the value of all Prize Bonds outstanding at the end of the previous month.

3.2 At any time the NTMA can amend the variable percentage rate used to calculate the prize fund, can change the value of prizes,
and the prize structure. Any such change will be advertised in the mainstream media and on StateSavings.ie

3.3 The current prize structure is as follows –
A €1 million prize is awarded in the last weekly draw of June and December.
The top prize in all other weekly draws is €50,000
The other weekly prizes are
€ 1,000 X 10 prizes
€500 X 10 prizes
€50 X All other prizes until the prize fund for that week has been fully utilised.

Taylor365

pbwinner wrote: »

Starting like I mean to continue! :P

I don't believe you, and your luck! :mad:
























:pac:

tuisginideach

Thanks dx - you are a mine of financial information. Strange to see them reducing the number .....

pbtracker

Winnings on 4th January 2021: €0
Last win : €50 6th Nov 2020
Investment : €77K (from Aug 2020)
Winnings Total : €200
Pre 2020 : €50
2020 : €150
2021 : €0

John arse

Taylor365 wrote: »

I don't believe you, and your luck! :mad:
























:pac:

and no dry spells in ten years?always way way above average?unbelievable really!

Liberalbrehon

pbwinner wrote: »

Starting like I mean to continue! :P
Happy new year everyone!

Winnings on 4th January 2021: €0
Last win 18th December 2020: €100
Total winnings on €25k from Feb 2011 to date: €3150
2011: €75 x 4 = €300
2012: €75 x 6 = €450
2013: €50 x 12 = €600
2014: €50 x 9 = €450
2015: €50 x 5 = €250
2016: €50 x 5 = €250
2017: €50 x 4 = €200
2018: €50 x 2 = €100
2019: €50 x 6 = €300
2020: €50 x 5 = €250
2021: €0

12.5% approx over ten years, that's a return of 1.25% per annum approx. not compounded.
If you invested that money in the stock market in Jan 2011, you'd probably be looking at approx of 175% return over ten years. in the right stocks or tracking the market that 25K would be worth about 40K now.
As it stands you've probably tracked inflation over the last ten years. Not lost money but not really gained much in real terms.
I'm an amateur in these matters, so take those apart but if you look at returns on the market over that term, they should be roughly correct. If you invested in Tesla, you'd be looking at multiples of that.
Of course, there is a market crash probably due over next few years, but that's the fun of it.


Also, based on info from someone who working in prizebonds in the noughties, large companies put short/mid-term capital into the system. i.e. millions. Those millionaires are most likely companies who've bought millions of worth of prizebonds.

Agent Smyth

A new year and the same crap again!!!

Hibernicis

FionnK86 wrote: »

I was thinking of purchasing 50 units (€312.5) and taking out before Xmas, as interest in deposit account is just .55% so I'd like to take a punt at this.

How much notice do they require to return money to account? I couldn't find anything at https://www.statesavings.ie/help-support/help-articles/prizebonds.

Also, does https://www.statesavings.ie/media/pdf/prizebonds_application_form?ext=.pdf need to be posted, or is there an email address? Trying to avoid going into shops for stamps.

As Rulmeq says, .55% is a good rate in the present market, better than you are likely to achieve from Prize Bonds.

To answer your other questions, there is a requirement that you hold bonds for a minimum of three months from the date of purchase. Thereafter they are repayable on demand (in my experience allow approx 10 days from the date you send of the redemption form and the bonds to the money landing in your account).

Your initial purchase options are (1) post the form, your payment and the necessary support documents (proof of address, proof of id and proof of PPSN) to An Post or (2) take the same documents to a Post Office and purchase over the counter. Once this is complete you will be able to make subsequent purchases online.

Be aware also that there is a DD facility for monthly purchases, which is a great way to save, even in small amounts.

Good luck.

Hibernicis

dxhound2005 wrote: »

I just had another thought. It could be that they are going to increase the amount of money given to high value prizes during 2021. This would reduce the number of €50 prizes. Maybe another 2 €1m prizes during the year?

3. The prize structure
3.1 The value of the monthly prize fund is recalculated at the start of each calendar month by applying a variable percentage rate
(currently 0.50%) to the value of all Prize Bonds outstanding at the end of the previous month.

3.2 At any time the NTMA can amend the variable percentage rate used to calculate the prize fund, can change the value of prizes,
and the prize structure. Any such change will be advertised in the mainstream media and on StateSavings.ie

3.3 The current prize structure is as follows –
A €1 million prize is awarded in the last weekly draw of June and December.
The top prize in all other weekly draws is €50,000
The other weekly prizes are
€ 1,000 X 10 prizes
€500 X 10 prizes
€50 X All other prizes until the prize fund for that week has been fully utilised.

Interesting to see a drop. Have you calculated the approximate drop in number of bonds in issue that this represents ?

A couple of thoughts crossed my mind. The number of December Prizes will have been calculated based on the number of outstanding bonds at the end of November. November is the month in which a lot of annual taxes fall due for payment. From personal experience I know that Prize Bonds were often purchased by the self employed etc in the early months of the year with monies set aside for tax payments, and then cashed in during October/November. Also, given the year that was in it, I suspect that people may have hoarded money during the year and withdrawn it in November in anticipation of a Christmas splurge/treat.

If there was a recalculation in the prize structure it should have been publicised by now.

Taylor365

Agent Smyth wrote: »

A new year and the same crap again!!!

What he shoulda dun was invest in apple on 19th of December 1997 @ 15:23 EST.


Is what he should dun.

dxhound2005

Hibernicis wrote: »

Interesting to see a drop. Have you calculated the approximate drop in number of bonds in issue that this represents ?

A couple of thoughts crossed my mind. The number of December Prizes will have been calculated based on the number of outstanding bonds at the end of November. November is the month in which a lot of annual taxes fall due for payment. From personal experience I know that Prize Bonds were often purchased by the self employed etc in the early months of the year with monies set aside for tax payments, and then cashed in during October/November. Also, given the year that was in it, I suspect that people may have hoarded money during the year and withdrawn it in November in anticipation of a Christmas splurge/treat.

If there was a recalculation in the prize structure it should have been publicised by now.

October and November were big months for encashments in 2018 and 2019. But sales still eclipsed them by many millions.

Page 21.

https://www.statesavings.ie/media/pdf/prizebonds_annualreport_2018.pdf

https://www.statesavings.ie/media/pdf/prizebonds_annualreport_2019.pdf

It is just speculation on my part, but a restructuring of the prizes is the only thing that seems to make sense. The encashments in December would have to have been 4 or 5 times any previous month going back for years, to result in the reduced number of prizes.

They could announce a new structure (more big value prizes, but a known annual amount) later in the year, but have already factored it into the January calculation. They have to take the current fixed annual amount for big prizes into the recalculation of the number of €50 prizes every month.

dxhound2005

I got my new bonds today from Monday's draw. AUS260xxx. My bonds from 03 Jan 2020 draw were AQF695xxx.

This would indicate sales of roughly 120 million bonds, €750m in 2020. €574m in 2018 and €537m 2019.

Living Off The Splash

Over a €100k in Prize Bonds and nothing since November. I have already reduced my holdings by €100k and I think that I will be doing the same this year.

Over two days a well known cement company here in Ireland's share price has jumped £3 per share. If my €100k had been invested there I would be up over £9k now.

John arse

Living Off The Splash wrote: »

Over a €100k in Prize Bonds and nothing since November. I have already reduced my holdings by €100k and I think that I will be doing the same this year.

Over two days a well known cement company here in Ireland's share price has jumped £3 per share. If my €100k had been invested there I would be up over £9k now.

yeah,i've 66k-nothing since july.am also wondering if there are spoofers on here maybe with an ntma connected agenda?

James Bond Junior

Can someone else buy bonds on your behalf? I've about 50k sitting doing nothing. I'm extremely time poor to research putting money into stocks etc but want to put it somewhere. I live abroad and am obviously stuck out of the country so can't buy them myself.

Bill Ponderosa

John arse wrote: »

yeah,i've 66k-nothing since july.am also wondering if there are spoofers on here maybe with an ntma connected agenda?

Prize bonds is not somewhere to make money it's simply for holding accessible cash. If want to make money there are other methods like said construction company, even I managed to make a few pounds from today.

John arse

Bill Ponderosa wrote: »

Prize bonds is not somewhere to make money it's simply for holding accessible cash. If want to make money there are other methods like said construction company, even I managed to make a few pounds from today.

yeah i know that i've had bonds now for a good few years,(i've other investments as well).they are a handy place to park a bit of cash i find but you want some return-however small-at some bloody stage???

carrickbawn

Nothing here again today.

pbtracker

And another zero for me! 2 months now without a win..

Winnings on 8th January 2021: €0
Last win : €50 6th Nov 2020
Investment : €77K (from Aug 2020)
Winnings Total : €200
Pre 2020 : €50
2020 : €150
2021 : €0

tuisginideach

Zilch here too

pbwinner

Winnings on 8th January 2021: €0
Last win 18th December 2020: €100
Total winnings on €25k from Feb 2011 to date: €3150
2011: €75 x 4 = €300
2012: €75 x 6 = €450
2013: €50 x 12 = €600
2014: €50 x 9 = €450
2015: €50 x 5 = €250
2016: €50 x 5 = €250
2017: €50 x 4 = €200
2018: €50 x 2 = €100
2019: €50 x 6 = €300
2020: €50 x 5 = €250
2021: €0

pbwinner

James Bond Junior wrote: »

Can someone else buy bonds on your behalf? I've about 50k sitting doing nothing. I'm extremely time poor to research putting money into stocks etc but want to put it somewhere. I live abroad and am obviously stuck out of the country so can't buy them myself.

They can be purchased as a gift.
https://www.statesavings.ie/help-support/help-articles/can-i-purchase-prize-bonds-as-a-gift

However I don't see any reason why you can't buy them online, from anywhere in the world, once you have the documentation. There's nothing in the T&C that mentions residency.

pbwinner

Liberalbrehon wrote: »

Also, based on info from someone who working in prizebonds in the noughties, large companies put short/mid-term capital into the system. i.e. millions. Those millionaires are most likely companies who've bought millions of worth of prizebonds.

Companies are not allowed to buy prize bonds, so either this is a porky pie or they have been complicit in enabling fraud on the State.

noodler

Gonna take mine out shortly but I really regret leaving them in so long.

Any low risk investment option would have dwarfed the returns tbf.