Prize Bonds are looking attractive alternatives to deposits

[podgerodge]

Wait for a full year. I predict you will then be close to the projected €750 return.

Not sure if your post is in jest or not plenty of sceptics on here !

 

[charlie007]

Actually serious! A number of years ago I tracked 2 €100k Prize Bond 'investments'. Despite amazing fluctuations ( 2 wins in one day and nothing for several months) after a year they came very close to The Duke's calculations! I even had an orphan win (a winning prize on a winning prize bond!) I then changed from a sceptic to a believer!

 

[Freelance]

I have had a substantial PB holding for a number of years. With the exception of one year my returns have been very much in line with the spreadsheets that @Duke of Marmalade kindly provides. Currently (since 1/10/2023) my return has been very close to .8%

 

[Duke of Marmalade]

I have had a substantial PB holding for a number of years. With the exception of one year my returns have been very much in line with the spreadsheets that @Duke of Marmalade kindly provides. Currently (since 1/10/2023) my return has been very close to .8%

I ditched my PBs about a year ago - very bad value.

 

[Freelance]

I ditched my PBs about a year ago - very bad value.

Understandable given the current very poor rates. The gap between PB rates and upper quartile deposit rates has never been greater, even allowing for the difference in tax treatment.

 

[joe sod]

you were getting 4% recently on raisin, its dropped back slightly recently, why are people wasting their money on these, they are basically giving their money to the state for virtually nothing?

 

[Freelance]

Still getting 4% gross from N26 Metal and better again from CA Britline.

Best rate on offer from Raisin now is 3.4% (ignoring BFF), which after DIRT and PRSI equals 2.1%, and you have the joy of dealing with Raisin

Best current rate for Irish Bank deposits is 3% (term) which after DIRT equals 2.0% and after DIRT and PRSI equals 1.9%

Effective rate for PB is currently .8% approx, and there are other reasons for having money in PB (and other state savings products) include:

• Funds available on demand after first 3 months, (generally within a week or so) without penalty apart from future interest foregone
• Guarantee significantly superior to DGS
• Good for short term funds (house deposits, future tax payments, etc.)

 

[Mousehelp]

Is there anywhere you can see the state savings rate equivalent if dirt and prsi applied. Can be difficult to compare SS rates with bank rates eg ptsb v state saving rate.

 

[Freelance]

Is there anywhere you can see the state savings rate equivalent if dirt and prsi applied. Can be difficult to compare SS rates with bank rates eg ptsb v state saving rate.

To gross up the State Savings rate, multiply it by 1.5873 so that it matches a bank deposit rate on which you have to pay DIRT at 33% and PRSI at 4%

i.e. to match a 5% rate from State Savings you would need to earn 7.93% from Raisin

To gross up the State Savings rate, multiply it by 1.4925 so that it matches a bank deposit rate on which you have to pay DIRT at 33%

i.e. to match a 5% rate from State Savings you would need to earn 7.46% from BOI

 

[Mousehelp]

Thank you very much - that is really useful.

 

[Powderfinger]

I've €100,000 in prize bonds (in lots of 10k, not that that should matter) for 15 months now. It's a substitute for cash, I could need some or all of it at short notice.

Today I received notification of a 16th prize win, bringing the total to €900 in that time.