# Prize Bonds



## DangerMouse1 (30 Apr 2008)

Hi All,

Im going traveling for a year im thinking about putting about half my money into prise bonds until i need it would i be able to cash them in on line i wonder.

Would anyone reccomend me doing this? as i will get no interest with the money just staying in my bank account.

Thanks


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## dewdrop (30 Apr 2008)

As you are getting no interest now i dont know what is stopping you from taking a chance you might win with no risk involved.


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## Dearg Doom (30 Apr 2008)

DangerMouse1 said:


> would i be able to cash them in on line i wonder.



I don't think you can - AFAIK you get a paper certificate and you need this to cash them in.



DangerMouse1 said:


> Would anyone reccomend me doing this? as i will get no interest with the money just staying in my bank account.



Why not put the money in to a high yield on line account? That way you will get some interest and as you need the money you will be able to transfer the money out and access it from anywhere in the world.


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## pennypincher (30 Apr 2008)

Although the An Post website states that for a 1000Euro investment you have a 4.3 to 1 chance of winning a prize.What are the odds of winning a significant prise i.e. something in the thousands?


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## Hobbes T (30 Apr 2008)

DangerMouse1 said:


> Hi All,
> 
> Im going traveling for a year im thinking about putting about half my money into prise bonds until i need it would i be able to cash them in on line i wonder.
> 
> ...



No you will not be able to cash in your prize bonds online. This is the post office were talking about here, not a flipping swiss bank acount!

Just put your money in a bank account and you can withdraw the money from anywhere in the world with an ATM card.


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## camlin90 (30 Apr 2008)

The prizes are calculated as 3% of the total fund so your expected after-tax return is 3% (equivalent to 3.75% from a deposit account subject to DIRT)

Of course this is over the long term...


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## LDFerguson (1 May 2008)

John J said:


> The prizes are calculated as 3% of the total fund so your expected after-tax return is 3% (equivalent to 3.75% from a deposit account subject to DIRT)
> 
> Of course this is over the long term...


 
Except that as this is a game of chance, your actual return may be zero.  Or it may be far greater than 3%.


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## ClubMan (1 May 2008)

dewdrop said:


> As you are getting no interest now i dont know what is stopping you from taking a chance you might win with no risk involved.


There is a significant risk that you will not win any prizes and will just get your nominal sum back which will have been eroded in real value due to inflation. A safer bet might be one or more of the high rate lump sum and/or regular saver deposit accounts listed in the _Financial Best Buys _forum. At least that way you will be guaranteed returns that will keep place with or at least mitigate the eroding effects of inflation.


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## aircobra19 (1 May 2008)

Two people I know have won on prize bonds. Must be the 00.001%. I don't have any myself.


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## steph1 (1 May 2008)

I have prizebonds which I transferred into my own name after my parents died and they would have bought some of these prizebonds whenever they came out first - early 60's mayble.  

Anyway I think my father only won once on them and that was 100 euros.

Think I will stick to doing the euromillions


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## gar123 (1 May 2008)

i buy for all my nieces and nephews prize bonds at christmas and birthdays

not the most exciting for them to open on the day but by the time the playstation 79 comes out they will have the dosh to buy it 

my niece is a little goldmine has won €75 3 or 4 times and she is only 5


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## gebbel (1 May 2008)

FLANDERS` said:


> never get any notification that a draw has even taken place and I have never heard of anyone ever winning anything.



The prize bonds website has detailed up to date info on all the weekly draws. You can enter a single Prize Bond number or                a range of numbers and check if you have won a prize(s) for those                bonds within the last six months. All prize winners are contacted                by post and unclaimed prizes (prizes not claimed within six months                of the draw date) are held until claimed by the bond holder.


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## Guest128 (1 May 2008)

Kudos Midsummer!!

Fair enough, I take the points on a few people winning and the draw notifications being on the web, but I still think its a terrible way to use your money.


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## Blinder (1 May 2008)

pennypincher said:


> Although the An Post website states that for a 1000Euro investment you have a 4.3 to 1 chance of winning a prize.What are the odds of winning a significant prise i.e. something in the thousands?


 
1000 will buy you 160 prize bonds.
So going by the odds given on the prize bond website, 1 prize bond will have 688-1 chance of winning a prize in a year.
This is a 35776-1 chance of winning a prize in a weekly draw.

Considering that there is 2,584 prizes in this weeks draw (assuming it is the same each week), this means that there is a 92,445,184 tickets in each draw and this is the odds of winning the top prize.
There is a minimum of 2 prize bonds to buy , so that about 46m-1.
If you have €1000 worth it's about 577824-1 of winning the top prize each week.

So unless my calculations are way off, there is more chance of winning the jackpot in the lotto that wining the top prize in the prize bonds draw each week. But the lotto 'investment' is only for one week whereas the prize bond 'investment' is ongoing.


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## dancingqueen (11 May 2008)

Does anyone know if you win on prize bonds to you have to pay tax on it in Ireland if your living outside Ireland but in the EU or if you reinvest does that count as no interest


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## ClubMan (11 May 2008)

Blinder said:


> So unless my calculations are way off, there is more chance of winning the jackpot in the lotto that wining the top prize in the prize bonds draw each week. But the lotto 'investment' is only for one week whereas the prize bond 'investment' is ongoing.


You don't get your money back on a _Lotto _ticket though.


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## ButtermilkJa (12 May 2008)

I decided to set-up a standing order about 7 months ago to buy Prize Bonds. €100 every month gets me 8 'bonds' and with my total invested now at €700 I haven't won anything yet 

But all it takes is a €25 win and I've made up for the loss of not making any interest. Here's hoping 

Incidentally, putting €100 into a Rabo account every month for a year (4.3% 'On Demand') will only make you €22.36 after DIRT. I'd rather take my chances at winning something big for the sake of €22.36 a year. That's about 6 weeks of playing the Lotto.


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## Don_08 (12 May 2008)

Just as a "bet" like Lotto - I have a direct debit for €25 per month for the last 4 years - so have about €1200 at this stage.  Won €75 twice  - so working out at 3% per annum.  Its my idea of doing the Lotto - better odds and you get your money back


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## ClubMan (12 May 2008)

ButtermilkJa said:


> I decided to set-up a standing order about 7 months ago to buy Prize Bonds. €100 every month gets me 8 'bonds' and with my total invested now at €700 I haven't won anything yet
> 
> But all it takes is a €25 win and I've made up for the loss of not making any interest. Here's hoping
> 
> Incidentally, putting €100 into a Rabo account every month for a year (4.3% 'On Demand') will only make you €22.36 after DIRT. I'd rather take my chances at winning something big for the sake of €22.36 a year. That's about 6 weeks of playing the Lotto.


Have you calculated how much your money is losing in real value due to inflation?


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## ButtermilkJa (13 May 2008)

I did, but then disregarded it as it doesn't really matter when comparing savings methods, as all money saved on deposit loses due to inflation. The only key deciding factor between which saving method to choose should be interest earned (or not earned in this case).


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## ClubMan (13 May 2008)

ButtermilkJa said:


> I did, but then disregarded it as it doesn't really matter when comparing savings methods, as all money saved on deposit loses due to inflation.


Regular savings in a c. 7% account does not.


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## ButtermilkJa (14 May 2008)

Yes I agree, but like I said, it really boils down to the interest achieved. This is the deciding factor. Inflation will have the same negative effect on every sum of money deposited anywhere, be it a bank or a mattress 

Sure, if I had €100k to deposit for 12 months I'd stick in a high interest account to beat inglation but for the sake of €20 'interest' a year, I'm happy enough to go with PrizeBonds.


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## ClubMan (14 May 2008)

ButtermilkJa said:


> Yes I agree, but like I said, it really boils down to the interest achieved. This is the deciding factor. Inflation will have the same negative effect on every sum of money deposited anywhere, be it a bank or a mattress


No it won't! If inflation is 5% and I am getting 7% on deposit or 0% stuck under my mattress (or in_ Prize Bonds_ if I win nothing which is quite likely) then the net effect is very different.


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## ButtermilkJa (15 May 2008)

Yes I completely understand. The point I'm trying to make is that if you remove the interest rates achieved from the equation then it doesn't matter where the money is held, as it is the interest rate alone that determines how the deposit performs and not its location.

Anyway, it's a meaningless point I made in passing and I really don't want to get into arguing it.


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## ClubMan (15 May 2008)

ButtermilkJa said:


> The point I'm trying to make is that if you remove the interest rates achieved from the equation then it doesn't matter where the money is held


If my auntie had testicles etc.... It's a meaningless argument.


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## L_earner (28 Jun 2008)

ButtermilkJa said:


> Sure, if I had €100k to deposit for 12 months I'd stick in a high interest account to beat inglation but for the sake of €20 'interest' a year, I'm happy enough to go with PrizeBonds.


Three years with 4k worth of prize bonds I won 75 Euro five times. I am well happy.


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## rmelly (28 Jun 2008)

L_earner said:


> Three years with 4k worth of prize bonds I won 75 Euro five times. I am well happy.


 
Why? That's not a great return - barely keeping pace with inflation, if even that.


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## L_earner (28 Jun 2008)

rmelly said:


> Why? That's not a great return - barely keeping pace with inflation, if even that.


1. No dirt
2. Possibility of a greater prize coming my way.
3. Comparison with the poor returns referred to in this thread.
4. Could not be bothered spending time and money looking for a bank that pays a better rate.
5. The fun of it.


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## rmelly (28 Jun 2008)

L_earner said:


> 1. No dirt
> 2. Possibility of a greater prize coming my way.
> 3. Comparison with the poor returns referred to in this thread.
> 4. Could not be arsed spending time and money looking for a bank that pays a better rate.
> 5. The fun of it.


 
1. Yes, but still not great.
2. But if you bought then today you'd still have the same odds of a big win once the vesting period (3 months?) is up. And you'd have the better interest over the last 3 years.
3. Yes, but in comparison to better returns out there...
4. Not sure what is an appropriate response to that
5. Not sure what is an appropriate response to that - maybe consider getting out more? Only kidding.


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## ClubMan (28 Jun 2008)

L_earner said:


> 1. No dirt


And probably no return. In fact negative returns due to inflation.


> 2. Possibility of a greater prize coming my way.


Good luck! 


> 3. Comparison with the poor returns referred to in this thread.


Even poor interest returns are at least guaranteed. 


> 4. Could not be bothered spending time and money looking for a bank that pays a better rate.


Very shortsighted view to take when looking where to invest/save.


> 5. The fun of it.


Ah well - that's alright so.


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## HMC (28 Jun 2008)

DangerMouse1 said:


> Hi All,
> 
> Im going traveling for a year im thinking about putting about half my money into prise bonds until i need it would i be able to cash them in on line i wonder.
> 
> ...


 
I have just cashed in a large amount of prize bonds (get the form from the Post Office and enclose your certificate).  I decided to try bonds for a year and I won €75 five times.  Now I'm going to put the money into Rabo instead.


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## dancingqueen (23 Sep 2009)

I still wonder do you have to pay tax on prize bond winnings if you live in another EU state outside Ireland?


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## thedon (23 Sep 2009)

You may all be interested in this other thread:

http://www.askaboutmoney.com/showthread.php?t=96948

Sorry dancingqueen I've no idea, however why not email them at:

info@prizebonds.ie

or fill in their online form at:

http://www.prizebonds.ie/feedback/comments.asp


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## dancingqueen (30 Sep 2009)

the don - prize bonds can't answer this question


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## thedon (1 Oct 2009)

dancingqueen said:


> the don - prize bonds can't answer this question



Ok, that's weird, you would imagine they of all people would be able to answer this question as it is their product?
So the revenue would appear to be your next step, you can find the relevant contact details on their website at:

http://www.revenue.ie


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## Crunchie (1 Oct 2009)

thedon said:


> So the revenue would appear to be your next step



Or perhaps the revenue equivalent in the country where you would be hoping to receive the prize money.

The Prize Bonds website does say "In Ireland all Prize Bond winnings are completely tax-free and are not liable to D.I.R.T. (Deposit Interest Retention Tax), Income Tax, or Capital Gains Tax.". I don't think they should be expected to know the taxation regulations in every other country.


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