Written answers

Wednesday, 16 January 2013

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance if he will provide details of the total value of prize bonds at the end of December for each of the years 2010, 2011 and 2012; and if he will state the total value of the prizes awarded for each of the same years; and if he will make a statement on the matter. [1301/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Prize Bonds are one of the range of State Savings products offered by the National Treasury Management Agency (NTMA). The total value of prize bonds outstanding at the end of December 2010, 2011 and 2012 was €1,328 million, €1,448 million and €1,648 and the value of prizes awarded each year was €36 million, €42 million and €46 million.

Consistent with a general reduction in market interest rates, the National Treasury Management Agency reduced interest rates on the full range of State Savings products on 16 December 2012. The rate of interest for the Prize Bond fund was reduced from 3% to 2.25% (effective from January 2013) and changes were made to the prize structure for lower value prizes so as to maintain the number of prizes at a high level.

As of January 2013, the top prize of €1 million (paid in the last weekly draw each month), the top prize of €20,000 paid in all other weekly draws and the five €1,000 prizes paid every week remain unchanged but the other lower value prizes were adjusted to take account of the new 2.25% rate of interest.

There are now 500 prizes of €100 and over 8,200 prizes of €50, whereas under the previous structure based on the 3% rate of interest, there were ten prizes of €250 and over 9,000 prizes of €75.

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