# Prize Bonds



## jvr1980 (24 Jan 2007)

I have a relatively small sum of money (€500) spare at the moment and am thinking of buying prize bonds as I'm guaranteed capital security.

I dont know many people who are investing in these anymore - are they a dead duck?


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## GeneralZod (24 Jan 2007)

I had £1000 worth for 7 years and got nothing then cashed them in and paid a bit of the mortgage off, a much better use of the money.

If you want capital security a savings account will give you that.

If you want prize bonds perhaps you could take out an insurance policy with one direct where they'll set aside €50 euros of prize bonds for a long as you renew the policy.


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## gipimann (24 Jan 2007)

My mother bought 3 prize bonds with money given to her on the birth of each of us (in 1961, 1965 and 1970) - each cost £5 which was a sizeable sum.   Never won a thing, and cashed them 12 months ago - got €6.35 for each of them.   You could treat prizebonds as buying lottery tickets which give you your money back I suppose!


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## ClubMan (24 Jan 2007)

_Prize Binds _are not really an investment as such - they are a ticket for a lottery that is redeemable at the nominal face value.


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## Ravima (24 Jan 2007)

€500 is not enough to have a better chance of several small prizes per year. Friend of mine put in €10K some years ago and reckons that the amount of small prizes won to date exceed the interest that would have been receiveable from his bank.


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## Guest109 (24 Jan 2007)

i have a few of them bonds for god knows how long never won a tosser a dead duck in my opinion


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## ClubMan (24 Jan 2007)

ainya said:


> i have a few of them bonds for god knows how long never won a tosser


No loss - a few bob would be better than a tosser any day!


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## camlin90 (24 Jan 2007)

According to the website the prize allocation is 2.4% of the total fund per annum, tax-free. 
With instant access deposit accounts paying up to 4% net I don't find that rate particularly attractive.
Of course the investment is state guaranteed, if you're that risk averse!

Personally had €500 in them for 3-4 years, won nothing, and cashed them in at the beginning of this month as part of a shake-up of my finances for the new year. Have stuck the cash in a Halifax account earning 5.32% net.


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## taxnovice (24 Jan 2007)

Prize Bonds do give capital security, but decrease in real value with inflation.

I have about €2000 in them and I reckon I have got(through occasional small wins) a return of slightly less than I could have got from a deposit  account. The big attraction is the ever present chance of having a big win.

I think that if you want a flutter without losing your money, this is a good way to do it  -- not like the Lotto, horses, etc.


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## ClubMan (24 Jan 2007)

John J said:


> According to the website the prize allocation is 2.4% of the total fund per annum, tax-free.
> With instant access deposit accounts paying up to 4% net I don't find that rate particularly attractive.


And it's not a rate of return - i.e. the 2.4% in no way reflects what you can or will earn on your _PBs_. You could earn nothing and in the meantime your capital is being eroded by inflation.


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## ClubMan (24 Jan 2007)

taxnovice said:


> I think that if you want a flutter without losing your money, this is a good way to do it  -- not like the Lotto, horses, etc.


Indeed. If you already have a diversified portfolio then there is no harm in having a few of them and better than the other options you mention. However they really should not be considered an investement as such and nobody should put most or all of their savings into them other than perhaps for a very short term (e.g. when you have definite plans for a lump sum and are willing to take a chance on a _PB _win rather than deposit returns).


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## jvr1980 (25 Jan 2007)

Thanks everyone - does anyone even know of anyone who has ever won big?

I know people who have won a few hundred but no more than that.


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## shelflife (27 Jan 2007)

in a low interest rate environment they are good value as part of a diverse portfolio however i think with the recent rises and another  one looming the value in holding them is dwindling


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## askew70 (27 Jan 2007)

Just to add to the experiences of others, I have had about €5000 in prize bonds for several years. As much as I have ever won at any one time was €75, but adding up those several winnings amounts to less than inflation has "cost me" in the same period.

In short, if I needed a good return on the money, I'd put it into a savings account. I view prize bonds as a relatively safe form of gambling - they are effectively costing me money but there is always the chance of winning a decent amount of money.  Forget about the odds of winning that you might see quoted, whether you win or not is entirely down to luck. Gives you something to anticipate on a Friday though as you check the results of the weekly draw


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