Prize Bond fund soars to €1.3bn

SALES of prize bonds — the non-risk, tax-free state-run savings scheme — grew by nearly 8% to a record €398 million last year, but €1.66m worth of prizes remain unclaimed.

The value of the prize bond fund stood at €1.3 billion at the end of 2010, which is the highest in the scheme’s history and just under 24% higher than the end of 2009. The value of cash prizes awarded to prize-bond holders also reached a record high last year; the €36m total up by 29% on the previous year.

As of the end of last year, the unclaimed prize fund — built up over the half century history of the scheme — amounted to €1.66m, less than 0.3% of the value of prizes awarded since the launch of the scheme in 1957. The top unclaimed prize is for €20,000, while over 75% of unclaimed prizes have a value of €250 or less. All cash prizes are tax-free and can be cashed in by winners any time after the minimum three-month holding period.

“Gross sales, the fund value as well as the number and value of prizes during the year, were all at the highest levels since the scheme began 53 years ago,” said chairman John Daly.

Mr Daly added: “The main reason for unclaimed prizes is where customers have changed their address without notifying us. No matter how long ago the prize was won, winners are still able to claim their prize.” The Prize Bond Company is run as a joint venture between An Post and Fexco, with the National Treasury Management Agency (NTMA) managing the scheme.