€25k invested in prize bonds

Cute Hoor

d@rk l0rd wrote: »

Prize bonds are a complete waste of money, invest the 25K in a high interest deposit account instead where you get a guaranteed return, e.g. KBC Bank.
Of course there's the chance you could win a big prize with Prize Bonds, but those chances are miniscule.

You will get roughly €385 (after dirt & usc) on your KBC account, not an earth shattering amount on €25k, the equivalent of 7/8 minimum wins on the PB's, you're guaranteed the €385 of course while you'll never know whether you'll get the 7/8 PB wins.

Of course you'll also never know if you'd have won the €20k or the €1m.

To say that it is a complete waste of money is probably a slight exaggeration, buying €25k worth of Bank of Ireland shares on 23rd February 2007, now there was a complete waste of money (if you held them).

Happy investing!

oaklands

For 25K or 4,000 bonds you should win €50 6.99 times on average per annum, which equates to €349.57 (actually as it has to be in multiples of 50 so it should be either 300 or 350).

On average, you will also win €100 every 2.58 years. so if you held the 25K for 3 years you would expect to end up with an average of €383 per annum over the 3 years (on average & Tax free)

Chance of winning larger prizes is so remote its best to forget about them.
(e.g. on average you should win the €1m prize every 6,000 years)

NB: based on May'13 probabilities

XrayMike235

Winnings from last draw: €0
Total winnings since October 2008 on €18K: €1350

Date of last win: April 26th (€50)

d@rk l0rd

Cute Hoor wrote: »

You will get roughly €385 (after dirt & usc) on your KBC account, not an earth shattering amount on €25k, the equivalent of 7/8 minimum wins on the PB's, you're guaranteed the €385 of course while you'll never know whether you'll get the 7/8 PB wins.

Happy investing!

So if you invest it in KBC you get a guaranteed €385 pa and if you invest it in prize bonds for a minimum of 3 years you may get €383 pa based on the laws of probability.
Of course you could win the big prize (minuscule chance but still a possibility), or you could win nothing.
Personally I cashed in my prize bonds ages ago, got fed up of the constant "sorry, not a winner" notices! :rolleyes:

oaklands

I just checked the KBC site & they seem to offer a return of €436.45 p.a. on €25k after DIRT with their Smart Access Demand Account (AER 2.6%).

(Although, some classes of tax payer are also liable to PRSI on Deposit interest, in addition to DIRT. From 2014 everyone will be hit for 33% DIRT + PRSI on deposit interest)

Most of the account offerings on the KBC site are worse or similar returns to PBs. However, they do have some like the above which provides a better guaranteed return than PBs, when the larger prizes are excluded)

Finally, AFAIK USC is not levied on deposit interest.

Raytown Rocks

Winnings from last draw: €0
Total winnings since March 2013 on €5K: €0

No wins to date ( joined march 2013)

Agent Smyth

Winnings from 24/05/13 draw €0
Last win 17/05/13 €100
Total wins 2013 €400
Total wins 2012 €375

XrayMike235

Winnings from todays draw: €0
Total winnings since October 2008 on €18K: €1350

Date of last win: April 26th (€50)

Man of Aran

Not a rex either. The PB's have really gone to the dogs ,,,,, in fact might be better fun having a flutter on the hounds or the ponies!

FoolsGold1

Winnings from 24/5/13 - Nil
Last win €50 on 12/4/13
Total winnings for 2013 - €500
Man of Aran says "Gone to the dogs!" All €50s, but even so:.....with two wins in Jan., two in Feb., five in March and one in April, and ZERO in May, I'm inclined to believe that no "dog" could be such a bitch! (Pardon my French) I'll let you all know if they make amends with the cool million next week.

pbwinner

Winnings from today's draw: €0
Total winnings since Feb 2011 on €25k: €1100

doriansmith

Haven't won a bean since my €50 win on 4th January :-( Not having any luck since the reduction in the prize fund.

WhiteMan32

Winnings from today's draw: €0
Total winnings since Feb 2012 on €12k: €250

oaklands

Kerryman - 22 May 2013....it could be you!

click link below for details....

link

smeedyova

How come they are only being contacted now??? I am very suspicious as to what is going on behind the scenes at the prize bond company. There is no way of knowing whether they are just rotating the bigger prizes amongst themselves...

Agent Smyth

Winnings from 31/05/13 draw €50
Last win 17/05/13 €100
Total wins 2013 €450
Total wins 2012 €375

pbwinner

Winnings from today's draw: €0
Total winnings since Feb 2011 on €25k: €1100

WhiteMan32

Winnings from today's draw: €0
Total winnings since Feb 2012 on €12k: €250

MasterSun

anyone interested?
http://www.ebay.ie/itm/290921497846?ssPageName=STRK:MESELX:IT&_trksid=p3984.m1555.l2649#ht_688wt_1186

d@rk l0rd

MasterSun wrote: »

anyone interested?
http://www.ebay.ie/itm/290921497846?ssPageName=STRK:MESELX:IT&_trksid=p3984.m1555.l2649#ht_688wt_1186

€4.99 for an excel sheet? A fool and their money are easily parted! :rolleyes:. This information is pretty much already listed on this thread, for free.

Sonnenblumen

Heard on this evening's news, € 1mio PB monthly draw will now take place every 2 months.

dman15333

Just seen the Prize bonds website updated.

The rate has gone from 2.25% to 1.75% to calculate the monthly fund.

''On 2nd June 2013 the National Treasury Management Agency announced a reduction in all State Savings interest rates. This changed, from 2.25% to 1.75%, the rate used to calculate the monthly prize fund.
The prize structure was changed to ensure that, despite the reduced interest rate, approximately the same number of prizes will be awarded each week.
The new weekly prize structure is as follows:

€1 Million bi-monthly prize awarded on the last Friday of every second month (Feb, Apr, Jun, Aug, Oct, Dec).

€20,000 awarded each week, other than when the €1 Million prize is awarded.
5 €1,000 prizes.
500 €100 prizes.
Over 8,000 €50 prizes.''

Agent Smyth

I hope that if and when interest rates go back up they're as quick to increase the prize fund

highgiant1985

dman15333 wrote: »

Just seen the Prize bonds website updated.

The rate has gone from 2.25% to 1.75% to calculate the monthly fund.

''On 2nd June 2013 the National Treasury Management Agency announced a reduction in all State Savings interest rates. This changed, from 2.25% to 1.75%, the rate used to calculate the monthly prize fund.
The prize structure was changed to ensure that, despite the reduced interest rate, approximately the same number of prizes will be awarded each week.
The new weekly prize structure is as follows:

€1 Million bi-monthly prize awarded on the last Friday of every second month (Feb, Apr, Jun, Aug, Oct, Dec).

€20,000 awarded each week, other than when the €1 Million prize is awarded.
5 €1,000 prizes.
500 €100 prizes.
Over 8,000 €50 prizes.''

does this take effect immediately?

pbwinner

Sonnenblumen wrote: »

Heard on this evening's news, € 1mio PB monthly draw will now take place every 2 months.

Confirmed on Morning Ireland and NTMA's website.

pbwinner

highgiant1985 wrote: »

does this take effect immediately?

"The rate reductions will only affect new purchases that take place after today (Sunday 2 June 2013). They have no effect on the existing holders of Savings Bonds, Savings Certificates, Instalment Savings or National Solidarity Bonds, as those interest rates have already been fixed for the duration of their term.

Any money already placed in previous issues of these products will continue to receive, for their remaining term, the fixed rates applicable to each product on the day that it was purchased."

http://www.ntma.ie/news/ntma-announces-new-issues-of-state-savings-products-and-changes-to-interest-rates/

brownbeard

http://www.irishtimes.com/business/sectors/financial-services/ntma-rate-cut-to-affect-interest-for-an-post-savers-1.1415165

"...the agency also announced changes to the variable rate products which will have an immediate effect on prize bonds and the 30-day notice deposit account plus.The variable rate of interest used to determine the value of the monthly prize fund is 1.75 per cent, with the top prize structure also changing."

Tisserand

Liveline will be covering the subject of prize bonds today for anyone interested. They are looking for people who have won prizes to phone in.

oaklands

highgiant1985 wrote: »

does this take effect immediately?

As per the NTMA press release:
Prize Bonds prize fund rate is now 1.75% – with effect from Sunday 2 June 2013 the variable rate of interest used to determine the value of the monthly prize fund is 1.75%. The top prize structure is also changing. Previously there was a €1 million prize each month, but now, with immediate effect, there will be a €1 million prize in the last weekly draw of each second month, viz. February, April, June, August, October and December.

If I am reading the legislation correctly (Regulation 11):
(1) The number of prizes and the amount of each prize to be awarded to bonds selected for prizes in a draw shall be determined by the Operator with the approval of NTMA provided always that the total amount made available for the payment of prizes generally shall not in any event be less than the amount of interest payable on all bonds outstanding at midnight on the last day of the month immediately preceding the month in which the draw is held.”.

This would suggest that they are legally obliged not to make any changes (to the overall value of prizes) until the July draws as the 'rate' change is effective from June 2nd.

To make any changes in the June draws they needed to make the changes effective from before midnight on May 31st.

As always the above is subject to correction....

oaklands

Just some quick notes on the recent changes....

The recent changes have the following impact (based on May'13 numbers):

• Total prize fund reduced by €9.66M per annum
• Total # prizes reduced by just over 1,000 per week (9,534->8,497)

It will be interesting to see the impact of these changes on the growth/decline of PBs. The last time they announced a reduction in the the prize fund in Dec'12 there was a surge in growth. If the same thing happens again maybe they should consider increasing the prize fund.

Seriously though..the most likely reason people have flocked to PBs is that the guarantee has elapsed for amounts over 100k on deposits and the Banks have yet again successfully lobbied the Government. This is likely to end up as a race to zero for PBs unless & until the Banks morph into profitable, sustainable & trusted commercial enterprises.