# How safe are prizebonds?



## Bluebean (15 Apr 2011)

hi all, 

I'm considering buying 4k worth of prize bonds, but just wondering with the government in the state that it is in - is this now risky?

I'm sure they are State guaranteed, but obviously the State could change their minds on that overnight

What do you think, would it be safer to leave it in Rabo?


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## UFC (15 Apr 2011)

It would definitely be safer to leave it in Rabo. The interest/winnings will be minimal on 4k, so I can't see any reason to keep your money in prize bonds.


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## mcriot29 (17 Apr 2011)

not worth it for 4k put it in bank of ireland or ebs


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## Palerider (17 Apr 2011)

All money invested in PB's is paid directly to the Govt and is under the management of the National Treasury Management Agency, the repayment of prize bonds is a  direct obligation of the Irish Government.  
All money invested in State Savings ranks equally and without preference with all other Irish Govt debt and All investors from the smallest to the largest are treated in exactly the same way.

Now thats the position and honestly for €4k why not give them a go for 12 months, I have them and am beating my benchmark which was INBS demand deposit account which paid 3.2% gross., it is bizarre but fun and no DIRT on any winnings....completely tax free.... you can check each Friday online and if you are not in well you cannot win...

Good luck !


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## Lightning (17 Apr 2011)

Palerider said:


> All money invested in PB's is paid directly to the Govt and is under the management of the National Treasury Management Agency, the repayment of prize bonds is a  direct obligation of the Irish Government.
> All money invested in State Savings ranks equally and without preference with all other Irish Govt debt and All investors from the smallest to the largest are treated in exactly the same way.



And that exactly is where the risk is. 

A default/debt restructure is more probable than not, as per the CDS market, this may effect holders of State Savings products.


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## Palerider (17 Apr 2011)

The Op is talking about €4k, If it is the case that an individual has to worry about €4k lent to the State and available for redemption at about a  weeks notice than I'm emigrating but where do I go and where does that leave the deposit guarantees...

There really is too much negativity notwithstanding CDS rates, a little perspective  is required coupled with a fair dollop of common sense.


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