Prize Bonds reduce the prize fund

Prize Bonds cost €6.25 each and are entered into a weekly draw giving you the opportunity to win tax free cash prices. Previously the prizes awarded were calculated based on an interest rate of 0.85%, this has now been cut to 0.5% starting from August. The rate cut isn’t that surprising considering how low interest rates are. Prize Bonds are part of the government debt and 0.85% interest rate was much higher than the government could otherwise borrow money at. Regardless this is bad news for those who have invested in Prize Bonds.

Old Prize Structure:

  • €1 Million Prize awarded 4 times a year (March, June, September and December)
  • Weekly Top Prize €50,000, other than when the €1 Million prize is awarded
  • 10x €1,000 prizes
  • 10x €500 prizes
  • All remaining prizes @ €50

New Prize Structure

  • €1 Million Prize awarded 2 times a year  (June and December)
  • Weekly Top Prize €50,000, other than when the €1 Million prize is awarded
  • 10x €1,000 prizes
  • 10x €500 prizes
  • All remaining prizes @ €50

While it might not look too bad on first glance – only the €1 Million prizes have been cut from 4 to 2 its actually a lot worse than that. The number of €50 prizes varies with each draw. Under the new structure there are over 3,500 €50 prizes each week compared to ~7,272 on the old structure.

I’ve got a fair whack invested in Prize Bonds which I will probably leave there for the time being but will start looking around again at the end of the year to decide where best to park my money.

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