€25k invested in prize bonds

Hibernicis

https://www.boards.ie/discussion/comment/120416066#Comment_120416066

It depends on the product you are invested in:

For Prize Bonds and for the Book Based Deposit Account - the new rate applies to existing holdings/balances from the date the rate changes.

For Fixed Term Products (National Solidarity Bonds, Savings Certs and Savings Bonds) the rate on existing investments does not change. The new rate applies only to new investments from the date of the rate change.

For Instalment Savings, it applies to any balances that move from the saving phase to the investment phase from the date of the change.

blade1

https://www.boards.ie/discussion/comment/120416126#Comment_120416126

I lumped a shītload into savings last November I think it was.

It was earning nothing where it was so thought might as well.

Would I be better off withdrawing it and starting from scratch again?

Hibernicis

I was referring to the Post Office book product in my figures above. It had a much bigger net inflow in 2021 than Prize Bonds, despite the miserly interest rate. I think it is the security of the product and convenience that makes it popular.

This point made in the last sentence is very important, and one that should get a lot more attention. There is a generation that is still very much alive (lets say roughly 75+) that grew up with book/paper based banking. Undoubtedly some of this grouping are computer literate and can cope with online banking, ATMs, debit and credit cards etc. but these are probably a minority. The An Post Book Based Deposit Account is I think that last widely available Book based account and it is hugely important to this cohort. It dovetails with their State Pension by allowing them to squirrel away a few bob when collecting the pension from the post office, and draw down cash as required, six days a week. And most importantly, it allows them to check their balance ten times a day if they wish by looking at the book. I had dealings with a few elderly individuals at the time PTSB withdrew their passbooks and it was horrible to watch. They were confused and upset and an annual statement was useless to them. And the bank did absolutely nothing to assist. It will be very different for younger generations when we advance in years, as we will be very familiar with these technologies over a long period. For this cohort, and others, the book based deposit account is vital. Which makes the rate being offered all the more appalling. And I am not looking for any special treatment, I see no reason why this rate shouldn't at least match the PB rate, or the AER on say Savings Bonds. Its not like the holders of these account will generate massive volitality by running to the post office withdrawing/depositing millions ever time the rate changes - the overall balance on deposit is not volatile and should allow NTMA to offer a reasonable rate - nothing special, just something that is fair.

Hibernicis

https://www.boards.ie/discussion/comment/120416162#Comment_120416162

Many of the State Savings Fixed Term products offer little to zero interest in their first year. Given that you invested so recently, you may not loose much/anything by withdrawing and you may gain substantially in the long term. It depends on the exact Product/Issue you invested in. You need to work out what you are going to loose/gain before deciding. In my case, most of my fixed term investments are ok (they are older issues at higher rates) and I will leave them alone. I had one investment in the Autumn of 2022 and I am encashing it and immediately reinvesting to avail of the new rate.

blade1

https://www.boards.ie/discussion/comment/120416281#Comment_120416281

10 years savings is what I invested in.

Hibernicis

https://www.boards.ie/discussion/comment/120416322#Comment_120416322

Then it would look like a no brainer to me.

If you leave your money where it is you will get the amount you invested plus 10% back in Nov 2032.

If you withdraw it now and reinvest it immediately, you will get the amount invested plus 16% in March/April 2033.

blade1

https://www.boards.ie/discussion/comment/120416418#Comment_120416418

Would you reckon is there be any point contacting them and asking for the higher rate before withdrawing the lot?

Its up near the maximum they accept.

Hibernicis

You could ask but I'd say you have zero chance. They actually deal with this in two of the points in the announcement:

https://www.statesavings.ie/help-support/help-articles/revised-rates

I have just invested with you, what interest rate will I receive?

All purchases made in a post office prior to 26th March 2023 or made online or by post prior to 26th March 2023 will be at the interest rates applicable before that date.

All purchases made on or after 26th March 2023 will receive the interest rates of the new issues (listed above).

Can I early encash my existing holdings and purchase new issues?

Yes. All State Savings products are subject to Terms and Conditions.

blade1

https://www.boards.ie/discussion/comment/120416514#Comment_120416514

Ok thanks for that.

Bit of a pain having to redo it 🙄

Hibernicis

https://www.boards.ie/discussion/comment/120416595#Comment_120416595

It is but you'll be thanking yourself in March/April 2033.

blade1

https://www.boards.ie/discussion/comment/120416618#Comment_120416618

It was bad enough the first time, as the money was in a German Bank account so I had to transfer it to my boi account and then take it out as a cheque from local bank.

I felt like I was Fingers Fingleton at the counter 🙊

I then found out afterwards that I was supposed to let German revenue know about transfers that are over 10k. 🫣

willycat

https://www.boards.ie/discussion/comment/120415870#Comment_120415870

Why do you still buy/cash them by post?

You just need to register to use Statesavings.ie, where you can buy/cash bonds within minutes back and forth from your bank account. You don't need to do anything by post. I recently wanted to cash a few bonds, I logged in, selected which ones and the amount, and got the full amount in my bank account in 3-4 business days.

Hibernicis

For online purchases (apart from reinvestments) you must us a debit card. The difficulty for most people is the transaction limits and daily limits that the remaining Irish banks impose on Debit Card transactions.

For AIB the debit card limits are €5,000 (transaction) and €7,100 daily aggregate

For BOI both of these are set at €25,000

I understand that PTSB's limit is €2,500 but I can find it on their rubbish website

N26 and Revolut are €5,000 per day as far as I know

Ulster Bank (was) €50,000

So for anybody seeking to invest say €100,000 in a state savings product, the online purchase is doable using a BOI card (purchase €25,000 per day on four consecutive days). It just isn't feasible if you bank with AIB or PTSB with their farcically low limits. Hence the need to revert to cheques/drafts and paper forms and post. State savings have no facility to purchase using a bank transfer.

feelings

https://www.boards.ie/discussion/comment/120421316#Comment_120421316

Because I was told by customer care I had to do it by post. There was "no online option", no matter how much I protested. Dark ages stuff.

pbwinner

The €250k winner is in Dublin.

Newest bond to win is BDP605079

Winnings on 31st March 2023: €0

Last win 5th August 2022: €50

Total winnings on €25k from Feb 2011 to date: €3250

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: €50 x 1 = €50

2022: €50 x 1 = €50

2023: €0

blade1

https://www.boards.ie/discussion/comment/120422594#Comment_120422594

I'm after adding my IBAN to my account and withdrew the lot.

I was hoping to re invest the lot again by them taking it from my bank account.

PB2018

Wins on 31st March 2023: €0

Last win: 6th January 2023: €50

Weeks since last win: 13

€134k invested in prize bonds since July 2017

Win ratio: 37 wins in 301 weeks (12%)

2017 (Jul-Dec): 5 x €50 = €250

2018 (Jan-Dec): 4 x €50 = €200

2019 (Jan-Dec): 5 x €50 = €250

2020 (Jan-Dec): 10 x €50 = €500

2021 (Jan-Dec): 2 x €50 = €100

2022 (Jan-date): 7 x €50 = €350

2023 (Jan-date): 1 x €50 = €50

POBox19

The end of Q1 2023 and a total of €4,118,100 was returned in 61,821 prizes. This is a slight increase in returns and prizes, because of the increased number of bonds issued, but the average prize value continues to drop, now €66.61. In Q4 2022 it was €67.25. Back in 2016 the average prize was €71.28 when almost 400,000 prizes were awarded.

What does it mean? The odds of winning a prize in a weekly draw have gone from 61,000:1 to 158,000:1 and the winners get less than ever.

dxhound2005

In 2021 the total of prizes paid, was €15,590,100. Of which €11,345,100 was €50 prizes, 72.7712% of the total value. Applying that to the 0.35% interest rate gives 0.2547. If the model was changed to keeping the big prizes, but paying out interest instead of €50 prizes, every €100 in bonds would get €0.25 interest. Not a practical proposition, but one which would satisfy those who need a guaranteed return. They would get €0.35 interest, if the big prizes were done away with as well, but then they could hardly be called Prize Bonds.

2021 is not a perfect year for doing calculations, as the interest rate changed in February. We will have the 2022 Annual Report soon, which will definitely show a small increase in the percentage of the prize fund given to €50 prizes. As long as the big prize structure stays the same, and the prize bond fund keeps increasing, this is inevitable. In real life terms a very very slightly better chance of winning €50, for any given notional percentage rate. If the whole 0.35% was given to €50 prizes, obviously there would be a lot more, and a much better chance of winning some prize.

Total prizes paid in 2020 was €19,242,050. The reduction in 2021 is obviously down to the interest rate change. But doing away with the Million Euro prizes also put an extra €1 million into the €50 prizes fund.

Hibernicis

My first quarter was ok.

2018 (Jan-Mar) - €200K - 3@€50 = €150

2019 (Jan-Mar) - €250K - 7@€50 = €350

2020 (Jan-Mar) - €252K - 8@€50 = €400

2021 (Jan-Mar) - €257K - 0@€50 = €0

2022 (Jan-Mar) - €258K - 5@€50 = €250

2023 (Jan-Mar) - €259K - 7@€50 = €350

tuisginideach

and once again ... nothing

POBox19

https://www.boards.ie/discussion/comment/120425402#Comment_120425402

Ditto

Along with 7,536,000 others!

John arse

Nothing in march-nothing in 2023 on €170k.1 win in the last six months.

tuisginideach

https://www.boards.ie/discussion/comment/120424920#Comment_120424920

I'd call that a remarkably good first quarter!

dxhound2005

I have just one win in the quarter, €50 in January. Looking back to 2022, it was two wins. But I finished the year with 16 wins. I know that previous draws, and previous spans of time have zero influence on the future. Everything is possible, including no more wins this year.

dxhound2005

March count, the same 16 million bonds BCP to BDE, in each of the five draws. Not included are a €1,000 and a €500 winner on 03 March. 80 million bonds winning two big prizes, doesn't hold out much hope for us.

The average per million, 6.0125 is almost the same as February which was 6.0. The €250.12 would be around €274 in a full sample of the €50 winners. 80 million out of 700 million is too small a sample. The overall can get skewed by a low week, 81 on 30 March, compared to the average of 96.

Fri 03 March. 105 wins. Highest BCV, BCY 10 each, lowest BCW 1.

Fri 10. 92. BCR 10, BCP 2.

Thurs 16. 104. BDB 11, BCP 2.

Fri 23. 99. BCW 11, BCT 1.

Fri 30. 81. BCZ 9, BCT 2.

Highest overall BCX 40 (8,8,10,8,6). Lowest BCP 21 (3,2,2,8,6) and BCT 21 (6,6,6,1,2)

80 million bonds won 481 prizes, average per million 6.0125. x52 x€50 equals €15,632.50. Divided by 62.5 to get what €100K would win with the same luck equals €250.12, nearest to 5 x €50.

willycat

https://www.boards.ie/discussion/comment/120422594#Comment_120422594

I'm not sure to who did you speak, but you CAN absolutely register to manage your Prize Bonds online and buy & cash them easily & quickly. You only need your State Savings Customer Number (SSCN) as explained there.

After registering, you can add your IBAN and it will be used to transfer there any winning prizes or any bonds you decide to cash.

bossdrum

I bought Prize Bonds in the Post Office over 2 weeks ago. Does anyone know how long it usually takes to get them in the Post?

dxhound2005

Next Draw

Thursday 6 April 2023

dxhound2005

https://www.boards.ie/discussion/comment/120441942#Comment_120441942

From the application form.

"If you are purchasing Prize Bonds at a Post Office you will be given a Receipt of Purchase. The actual Prize Bond Certificate will be forwarded direct by post to the named Bondholder(s) within 10 working days on condition that the necessary verification requirements have been completed (note 1)."