Prize bonds sales soar

Sales in State-guaranteed prize bonds have surged this year as cautious savers look for a safe place to put their cash.

Sales in State-guaranteed prize bonds have surged this year as cautious savers look for a safe place to put their cash.

Gross takings hit more than €100 million since January - up three-fold on the same period last year.

The company also recorded a record sales high in 2008, with almost half of all investments happening in the autumn before the Government’s bank guarantee scheme.

Prize Bond Company chairman Michael O’Keeffe said the massive €1 million spring draw in March also helped the huge rise in sales.

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“We have had continued strong growth in sales in the first three months of 2009, reflecting higher levels of savings and a phenomenal response to the spring one million euro Jackpot campaign,” Mr O’Keeffe said.

“The savings trend is continuing in line with the Central Bank’s prediction of increased precautionary savings by consumers.

“It also demonstrates Prize Bonds’ enduring appeal to consumers.”

The Prize Bond scheme is operated on behalf of the National Treasury Management Agency (NTMA). The bonds are a risk-free, state savings scheme offering investors the chance to win big cash prizes every week.

Gross takings hit €279 million, up a massive 95 per cent on 2007.

Almost half of the sales in 2008 occurred in September and October as savers began looking for a safe place to put their money.

The €440 billion bank guarantee scheme was approved by the Dáil in late October.

In September €88 million worth of bonds were bought while in October that figure dipped to €47 million. Last year also saw the highest level of prizes handed out to date, totalling €20.3 million compared with €15.9 million in 2007.

At the end of 2008, the total amount of unclaimed prizes built up over the last 51 years amounted to €1.4 million.

In the first four months of this year sales hit €101 million, compared to €34 million in the same period in 2007.

PA