Prize Bonds are looking attractive alternatives to deposits

I never knew that!
Limit is £50k per individual (vs €250k)
The overall payout is 1.4% vs 0.5% (reflecting different interest rate environment)
The distribution is better with 1.2% being paid in £25 prizes
So let us compare £100k Premium Bonds vs €100k Prize Bonds
Premium: average 48 prizes of £25 p.a.
Prize: average of 7 prizes of €50 p.a.
So Premium Bonds offer both a higher expectation and a lower relative standard deviation of returns (14% vs 38%)

The exchange rate risk for an Irish resident has already been mentioned but if you have sterling liabilities or if you would like to diversify a bit the risk of a Euro wobble then Prize Bonds look attractive.
 
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Saavy99 said:
Oh that's great news, I have lump sum sitting in UK current account earning nothing. I will look into putting it into the prize bonds.
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I'm in the same boat, have been for years. I could stretch to the max £100k which means that over the last few years I have left a bit on the table. But it seems we have to wait for the coronavirus thing to blow over to get in.
 
Duke of Marmalade said:
I'm in the same boat, have been for years. I could stretch to the max £100k which means that over the last few years I have left a bit on the table. But it seems we have to wait for the coronavirus thing to blow over to get in.
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I decided to give it a try over the phone. About a 30 minute queue but the good news is that I now have a Premium Bond account Took all the details over the phone, especially my PPSN. The conversation was awkward, she asked was the Republic of Ireland in the UK, apologising for asking!
 
Saavy99 said:
What's the number Duke?
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0044 1253 832 007 open till 10 tonight

My wife tried to open one after me (not allowed joint accounts)
They said that she had to apply by post and did she want an application form sent to her. She said they had processed me over the phone and so they allowed her to do the same.
 
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According to the nsandi.com website:

"Bonds can only be purchased online or by phone using a personal debit card issued by a UK bank or building society."

Duke, have you purchased bonds since you opened your account? If so, how did you purchase them?

Thanks.
 
Manuel,
I have my roots in the North so yes I do have a NI Ulster Bank Debit Card.
 
Duke of Marmalade said:
The exchange rate risk for an Irish resident has already been mentioned but if you have sterling liabilities or if you would like to diversify a bit the risk of a Euro wobble then Prize Bonds look attractive.
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Was the exchange rate a factor in your decision to purchase sterling Premium Bonds? As in do you envisage not only winning bond prizes, but also making profit through currency exchange rate?
 
Lisboa said:
Was the exchange rate a factor in your decision to purchase sterling Premium Bonds? As in do you envisage not only winning bond prizes, but also making profit through currency exchange rate?
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As mentioned before I have Northern roots and therefore a level of expenditure in sterling. I also took out a "hedge" when it looked like Greece might sink the euro. I have therefore kept a sterling account partly as a hedge against total euro meltdown and also for future sterling expenditure. Up till now I have kept that sterling hedge in a current account. I have now been able to transfer some of that hedge to 1.4% earning Premium Bonds. So the exchange rate was irrelevant. For Irish folk without these circumstances £ Premium Bonds probably do not make much investment sense.
 
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Hi , I am wondering how , if possible, to purchase more than 10k Prize Bonds or Sate Savings online ( AIB daily max transfer limit is 10k ) so that doesnt seem to be an option. Bank draft and ovrr the vounter purchase might be the easiest way , as Ive done before. Thank you.
 

I’ve seen this discussed elsewhere. So far as I know your options are:
1. Bank Draft or Personal Cheque (Some banks are slow to issue bank drafts in favour of other financial institutions, so this could be an issue)
2. Use an Ulster Bank or certain other Visa Debit cards as these have a higher daily limit
3. Multiple daily purchases of €10k each, if this is AIB’s daily Debit card limit

Best of luck
 
I have my Premium Bonds up and running. Did it by phone. I had a UB NI £ bank account. It took a bit of an effort as my first attempt failed at the last hurdle when I discovered my debit card was out of date. On my second attempt they said I had to apply by post. I told them that was most perplexing as the day before I was able to almost complete the process by phone. They relented and the process was concluded over the phone. Maybe you could try reasoning with them arguing that the RoI post was extremely unreliable these days (Covid). Unpatriotic I know.
 
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Lol
Thanks for the info...
I did feel the person on the call couldn't be bothered...Maybe having a bad day....
 
My sister lives in UK and said she'll pay for the premium bonds through her account. Should I still ring them to get an application form for non residents for them assuming I need to sign the form? My sister knows nothing about this kind of thing!
 
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