Prize Bond fund hits a record €4.4bn as savers seek return

THE Prize Bond fund is at a record €4.4billion as people desperate for a return pour their cash into them.

A net amount of €332 million went into the fund last year, even as the prize amounts were reduced because of the paltry interest rates on which the fund is calculated.

Just last year new savers bought €660.5million worth of bonds but current savers cashed-in €327.7 million.

There were 228,015 prizes awarded in 2021, with a total value of €15.6million. There are more than 4,000 prizes a week and a €250,000 prize draw takes place four times a year, in March, June, September and December.

More than half, 55%, of Prize Bonds are bought through the post office while more than 18% of bond sales last year were made online, compared to less than 17% in 2020.

Prize Bond Company chairwoman Debbie Byrne said: ‘The chance to win prizes weekly remains a defining feature of the Prize Bonds product and part of its enduring popularity.

‘With the introduction of more selfserve online services, customers are now able to see their State Savings holdings, including Prize Bonds, online and to undertake more activity with us using their choice of channel.’

At the end of last year, there were €3.2million in unclaimed prizes ‘which

continues to represent a small portion of the value of prizes awarded since the launch of the scheme’. The unclaimed prizes have accumulated since Prize Bonds were established in 1957.

The interest rate paid on the fund to work out the cash from which prizes are paid was cut in February to 0.35% from 0.5%, which is still higher than the 0.25% most banks pay on deposit accounts.

Deposit account interest is also charged Dirt of 33% on the small amount of interest earned whereas Prize Bond winnings are not.

Finance expert Brendan Burgess, of Askaboutmoney.com, said: ‘It’s very hard to know what to do with your money these days so sticking it into Prize Bonds is no harm.’