Prize Bonds - How safe are they?

[Guelder]

Hello all!

I currently have a sizeable chunk invested in Prize Bonds, and may be investing in some more in the next 6 months or so, however I've now grown worried about the safety of Prize Bonds.

A few years ago, in my mind they were 100% safe, no risk, cash them in anytime and get all your money back, but now I'm not so sure and a lot of people have questioned the safety of them.

Am I being paranoid? Am I being right in questioning the safety of them? Would a bank be a "safer bet" in which to keep my money?

Any opinions greatly welcomed.

 

[horusd]

As prize bonds have a state guarantee there as safe as it gets in terms of the state itself. If Ireland goes wallop that's a different story, but I think that's pretty unlikely despite all the genuine concern about it's financial position.

 

[Black Rock]

NTMA State Savings and Prize Bonds

Prize Bonds rank equally with the full range of personal savings products offered by the NTMA which are known as “NTMA State Savings” products (which include Prize Bonds) and with all other "wholesale" Irish Government Bonds. Prize Bonds are part of the "sovereign debt" of Ireland.
· When you place your money in NTMA State Savings™ you are placing your money directly with the Irish Government.
· The repayment of all NTMA State Savings™ money is a direct, unconditional obligation of the Government of Ireland.
· There is no upper limit on the amount of your money that is protected
· There is no expiry or end date for this protection
· Repayment of your money includes principal, interest and bonus payments if due, and in respect of Prize Bonds, cash prizes.
· NTMA State Savings™ form part of the sovereign debt of Ireland which is managed by the NTMA.

The NTMA's website ( www.StateSavings.ie) has a brochure on the home page which explains everything and lists all the "NTMA State Savings" products which include Prize Bonds, Savings Bonds, Savings Certificates, Instalment Savings, Deposit Accounts (such as the Ordinary Deposit Account and the Deposit Account Plus) and National Solidarity Bonds.