Prize Bond fund a record €1bn
By end September 2009 the fund witnessed a sharp 26% increase since the start of the year, putting the total value of the bonds held to more than €1.014bn.
Last night a spokeswoman said “several factors” explain the rush to bonds at present including the “uncertain times we live in”.
Bonds are also a form of saving which has risen sharply during the recession and that is something the Central Bank has also commented on, she said.
“It is a fact that people have been saving more during the recession and that is reflected in prize bond sales also,” she said.
The state guarantee plus the fact that bonds can be easily retrieved have also contributed to their popularity over the years,” she said.
“The continued strong growth in sales reflects the national trend of increased household savings. There has also been a very positive response from customers to the new prize structure,” the company said.
Roughly 2.5m people hold Prize Bonds with over €280m worth of bonds bought in the first nine months of 2009.
That is marginally ahead of the €279m in 2008 and is a 54% increase on the same period last year.
People also continue to cash in their bonds however, and €73.6m worth were retrieved over the period, similar to the trend witnessed in 2008.
Owners of Prize Bonds now have the chance to win a €1m prize each month, in addition to over 4,000 other weekly cash prizes while total prize money to date this year exceeds €20m.
Michael O’Keeffe, chairman of the company said: “The Prize Bond fund exceeding €1bn is a major milestone in the Prize Bond scheme’s 52 years of history and demonstrates Prize Bonds’ enduring popularity.”
The bonds are a state savings product and instead of paying interest, offers the chance to win cash prizes every week. All winnings are tax-free, and bonds can be cashed in at any time after the minimum holding period of three months.
