Sale of prize bonds up 11%

Sales of prize bonds rose by 11 per cent last year as savers searched for risk-free homes for their cash, according to the Prize Bond Company's annual report.

The value of prize bond sales increased to just under €83 million in 2002.

Holders encashed a total of €42.7 million in bonds, a rise of 12 per cent, resulting in net sales of €40.2 million.

The value of funds in the company stands at €375.1 million, an increase of 13 per cent. The value of the average purchase increased by 29 per cent to €466.

Some 85,521 prizes, with a total value of €9.34 million, were awarded during 2002.

However, some €860,000 worth of prizes remain unclaimed by more than 5,000 winners since the prize draws first began in 1957. A list of unclaimed prizes is now available at post offices and at www.prizebonds.ie.

Mr Michael O'Keeffe, chairman of the Prize Bond Company, said he believed savers were increasingly attracted to secure investments such as the prize bonds, which offer holders the chance to win tax-free, State-guaranteed cash prizes of up to €150,000.

"This is especially so now with uncertain equity markets and the prevailing low interest rate environment, and is borne out by the continued increase in the value of the average purchase," Mr O'Keeffe said.

The company said the success of marketing campaigns and favourable economic factors continued to be in evidence during 2003, with sales of €35.7 million so far this year.

Bonds can be purchased at post offices, by calling 1850 67 1000 or at www.prizebonds.ie. The minimum purchase is four units, which costs €25. Prize bonds enter a weekly cash draw with prizes ranging from €75 to the monthly €150,000 jackpot.