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State savings or prize bonds?

  • 17-12-2018 2:43pm
    #1
    Registered Users Posts: 5,972 ✭✭✭ OU812


    Have about €300 a month to put away for college funds down the line. Would I be better off with the state savings product or prize bonds?

    Initial cash in will be about 11 years with a further draw four years later.


Comments

  • Registered Users Posts: 7,494 ✭✭✭ BrokenArrows


    OU812 wrote: »
    Have about €300 a month to put away for college funds down the line. Would I be better off with the state savings product or prize bonds?

    Initial cash in will be about 11 years with a further draw four years later.

    They both technically offer a similar rate of return. However you could get more from the prize bonds if you're lucky or absolutely nothing if you're unlucky.

    If you want a guaranteed return then use the state bonds.


  • Registered Users Posts: 5,972 ✭✭✭ OU812


    They both technically offer a similar rate of return. However you could get more from the prize bonds if you're lucky or absolutely nothing if you're unlucky.

    If you want a guaranteed return then use the state bonds.

    The prize bonds are depreciating though, no? A fiver now is the same fiver in 10 years but having had inflation nibble away at it whereas the state savings pays an apt of 16% over the life saving some of that depreciation


  • Registered Users Posts: 7,494 ✭✭✭ BrokenArrows


    OU812 wrote: »
    The prize bonds are depreciating though, no? A fiver now is the same fiver in 10 years but having had inflation nibble away at it whereas the state savings pays an apt of 16% over the life saving some of that depreciation

    Well the assumption is that you also get a return from the prize bonds too. They just get a return in "prizes".

    State bonds are 16% after 10 years. As i said you may get less or more than this with prizebonds depending on how lucky you are.


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