Prize Bonds

S+

Anyone any experience - worth depositing €20k or so in for 6 months ?

towger

Hi, I've done that , about half that amount over a few years. Have won €75 several times ( a few per year ) and a few hundred once. For sure better than the bank or B.Soc where interest is nothing at the moment. For risk free investment, at the moment I definitely reccomend.

RainyDay

Prize bonds are definitely not a 'risk free' investment. You have the very real risk of inflation eating away at the value of your capital every day. The Prize Bond company were quoting average returns of around 2.6% or 2.7%, but these averages are very heavily skewed by the small number of very large prizes. If you take out the very large prizes (and take a realistic view that you're just not going to win these), then the average returns are a pittance.

Given that Rabobank have launched their new deposit account with 3% return for demand deposits (i.e. funds not tied up for any period), I can't see why anyone would go for prize bonds.

towger

Hi, yeah but 3% of 20k for 6 months after tax is in the region of €150. Why bother ? ....... at least with the prize bond there is ( I admit ) a small change of a nice return.
But , yes, for the long term of course you do loose capital value for sure

i71jskz5xu42pb

http://www.rabodirect.ie/ are offering 3% on demand (there may be a better six month fixed rates out there). For six months after dirt at 20% that would be €240 euros guaranteed.

Compare that to the chance of winning €240 with prize bonds I know where I'd put my money (not Prize bonds).

S+

cheers folks.

Looks like 6mths returns ~1.8% before DIRT with rabobank

anyother suggestions for parking €25k for a safe return ?

i71jskz5xu42pb

Looks like 6mths returns ~1.8% before DIRT with rabobank

Don't know where you are getting that. The web site says 3% before Dirt?
http://www.rabodirect.ie/savings/risa.asp

Other options include
http://www.angloirishbank.com/depositrateseuro.asp 2.16% before dirt
http://www.irish-nationwide.com/rates_fixed.mv 1.75%
http://www.paddypower.com/bet?action=show_type_by_main_market&category=SOCCER&ev_class_id=53&id=4864

Obviously not as good a deal as Rabo though.

S+

PaschalNee wrote:

Don't know where you are getting that. The web site says 3% before Dirt?

From the website.
3% is an annual return it quotes 1.88% for 6 months.

Think I'll give paddy power a miss