Prize bonds can be acquired and cashed in any quantity at all SBP BSC (Bank) field offices, National Savings Center offices, and approved commercial bank branches.
Is it possible to purchase prize bonds at the post office?
With historically low interest rates persisting, savers have struggled to earn a fair return on bank accounts for quite some time.
People have been looking for other potentially lucrative places to invest their money, and one of the most popular options since the financial crisis has been the state-run Prize Bond operation.
The National Treasury Management Agency manages Prize Bonds, which are part of the State savings plan (NTMA).
They can be purchased in 6.25 units, but each transaction must include at least four bonds, resulting in a minimum spend of 25.
Prize Bonds can be purchased online, by phone, by mail, and at any of the country’s 1,122 post offices.
Once you’ve purchased bonds, you’ll be placed into a weekly draw for prizes ranging from 50 to 50,000 (with two draws a year for a top reward of 1 million).
There are a number of clear advantages to investing in prize bonds rather than a savings account.
As a result, the interest you earn in relation to the amount you save will be extremely low.
Although prize bonds do not pay interest, there is the possibility of earning more money through weekly prize draws.
If you hit it big one week, or even if you just manage to win a few 50 or 500 prizes, your returns will be significantly greater than what a bank would provide you on the same investment.
However, prize bonds are no longer as attractive as they were in recent years, and a bondholder’s odds of winning have drastically decreased.
Despite the fact that Irish people are paying more on prize bonds than ever before, the prize fund is shrinking.
Last year, 567 million in prize bonds were issued, raising the total fund (the entire amount of money people have invested) to above 3 billion for the first time.
Despite this, with 302,000 awards given out last year, the number of prizes awarded fell by nearly 30%. In 2016, the same figure was above 392,000.
The prize money is also substantially lower: in 2016, 28 million was awarded, but last year it was just 21.3 million, a drop of roughly 7 million.
The ‘fund rate,’ in essence, is the percentage of the 3 billion+ in prize bonds that is awarded to holders in prizes, and while a 0.35 percent decline may not sound like much, it soon adds up when you’re talking billions!
When you consider that 2016 and 2017 were the two busiest years ever for prize bond sales, and the prize bond fund rate was as high as 1.25 percent as recently as 2016, this reduction is distressing.
The frequency of the 1 million award has also been significantly reduced. The 1 million was handed out on a monthly basis until June 2013, when it was cut to six payments per year.
The frequency of the 1 million prize award was lowered to four times a year starting in August 2016, and the National Treasury Management Agency stated last year that the 1 million prize will only be awarded twice a year, in June and December.
As a result of the lower rate, the number of weekly prizes has decreased from more than 7,000 in 2016 to just over 4,000 now.
In explaining the drop in the prize fund, the NTMA said the interest rate on the prize fund was “cut last year to reflect changes throughout the retail savings market and the fall in the State’s cost of borrowing.
“As a result, the quantity of awards has decreased, but there are still a large number of rewards, with over 4,000 granted per week and over 70,000 awarded year to date.”
Bonds “retain their value because the initial investment can be paid at any moment and the money refunded to the customer,” according to the NTMA.
Are prize bonds a more appealing investment than a standard savings account based on this? With prize bonds, there’s a lot more room for profit.
If you win at least one of the minimum value prizes each year, your return will be comparable to the interest rate on a savings account, and if you win more, your return will be substantially higher.
The risk is minimal: you can’t lose any money, and all money invested in prize bonds is guaranteed by the government, with a maximum bond holding limit of 250,000 per individual.
You’d only be giving up the guaranteed 0.5 percent return on deposits, which isn’t much for most of us anyhow.
What is the price of a prize bond?
Prize Bonds are sold in 6.25 denominations. A 25 minimum purchase is required (4 units). Purchases can be made online or by filling out a Purchase Application Form, which is also accessible at any Post Office.
How do I purchase a prize bond via the internet?
Prize bonds can be acquired and cashed in any quantity at all SBP BSC (State Bank of Pakistan Banking Services Corporation Bank) field offices, National Savings Center offices, and approved commercial bank branches.
Q. Can I Buy Prize Bond in Pakistan Online?
Prize bonds cannot be purchased online. To purchase the bonds, you must go to any local bank, National Savings, or State Bank. Any online vendor should be avoided.
How do I purchase a prize bond in the United Kingdom?
What is the procedure for purchasing Premium Bonds?
- Purchasing anything on the internet. Premium Bonds can be purchased through our safe online system.
- Purchasing through mail. Simply fill out an application and mail it to us along with a check made payable to NS&I.
Prize Bonds have an expiration date.
National prize bonds (bearer or unregistered) are set to expire this month, and after December 31, 2021, the bills will be worthless. Bearer bonds with values of Rs7,500, Rs15,000, Rs25,000, and Rs40,000 must be withdrawn by December 31, 2021, according to the government.
Is the 25000 Prize Bond still valid?
National Prize Bonds of Rs. 25,000 denomination shall not be sold with immediate effect and will not be encashed / redeemed after May 31, 2021, according to State Bank of Pakistan – Cash Management Department Circular No. 8 dated December 10, 2020.
Is it worthwhile to purchase prize bonds?
Prize bonds are more popular than ever in Ireland, with over 4 billion in total issued. Are prize bonds, on the other hand, a worthwhile investment?
Prize bonds are lottery bonds that do not pay interest. Your money has a government guarantee that it will be returned when it is redeemed (after a minimum 3 month holding period). That’s the good news; in fact, since the 2008 financial crisis, this savings security has been the primary driver of huge yearly growth in sales, with a record 670 million spent on prize bonds in 2016. The bad news is that there is no interest. Instead, the bearer is automatically entered into a weekly prize draw for a series of tax-free cash prizes ranging from 50 to 50,000, with a 250,000 prize draw every three months. The total prize fund has a nominal tax-free interest rate of 0.35 percent as of February 2021.
1. Winning a prize (and consequently earning ‘interest’) is extremely unlikely. According to the prize bond organizers, you have a one in five chance of winning something in any given year but it may be as little as 50.
2. A theoretical tax-free interest rate of 0.35 percent is roughly equivalent to a gross rate of 0.5 percent. Yes, this is better than the best bank rates, but your deposit interest is real, but the interest rate on prize bonds is notional, meaning you could win/earn nothing.
3. The small number of very large prizes skews the gross 0.5 percent notional rate of return upwards, making it unrepresentative of likely returns. To get a reasonable return in a reasonable amount of time, it is necessary to make a fairly substantial investment, in excess of 10,000.
4. Finally, and most importantly, if you’re saving for the future and already have a rainy day fund in a bank account, prize bonds aren’t the way to go because they’re just another type of inflation-sapping deposit account. Instead, you should engage in a straightforward global stock market investment for the medium to long term.
Like lottery tickets, prize bonds are good for gifts and for a little bit of excitement with modest quantities, but if you are serious about obtaining a better return on long term savings, they are not for you.
Do prize bonds appreciate in value over time?
It indicated that prize bond sales grew to 735.7 million in 2019, up from 537 million the previous year. The fund’s value, which represents the total amount invested in prize bonds, increased by 12.2% from 3.7 billion in 2019.
How do you find out who won the Prize Bonds?
Prize bonds are one of the best methods to make a lot of money without having to worry about getting tricked or falling victim to a scam or fraud. It’s referred to as a win-win situation because there will be no financial loss in either circumstance. In Pakistan, the Ministry of Finance is in charge of handling and issuing prize bonds, while the Central Directorate of National Savings (CDNS) is in charge of all prize bond matters.
The government first introduced the notion of a prize bond in 1960, and it has continued to aid people since then.
The concept of a prize bond fortunate draw is intriguing, as it allows a lucky person to become wealthy overnight by purchasing these bonds. People can easily purchase prize bonds from Pakistan’s central bank. Furthermore, although there are numerous businesses selling prize bonds, it is suggested that prize bonds be purchased directly from the state bank. If luck is on your side, you can acquire prize bonds in various amounts and win a large sum as a result.
In Pakistan, the government reported 36 draws in a variety of large cities. Each series of prize bonds has a different set of numbers, and each series has a maximum of 1,000,000 bond numbers (1,000,000 bonds). Each prize bond is drawn four times a year (quarterly), and each year, roughly 70,600 Pakistanis win the prize bond, as shown by the bond numbers. People win about 1.6 billion rupees a year through prize bonds, according to the findings.
Denominations of Prize Bond
If you are new to prize bonds, it is critical that you understand the many types of prize bonds. You can choose from eight different types of reward bonds, each with a different denomination.
Each prize bond denomination has a unique winning amount based on the cost of the prize bond. The first three positions for each denomination were announced by the regulatory authorities, and the winning sum for each position differed from the others. The denominations of the prize bonds, as well as the winning rewards for the first, second, and third places, are listed below. Prize bonds are offered in Pakistan in denominations of Rs. 100, 200, 750, 1500, 7500, 15,000, 25,000, and 40,000 (premium).
Prizes of Each Denomination
For the first, second, and third places, the winning amounts from the 100 rupee prize bond are Rs 7,00,000/-, 2,00,000/-, and 1,000/-, respectively.
If you have a prize bond of 200 rupees, you can earn Rs 7,50,000/-, 50,000/-, and 1,250/- for the first, second, and third places, respectively.
For the first, second, and third places, anyone holding a prize bond of Rs 750 can earn Rs 15,00,000/-, 5,00,000/-, and 9,300/-, respectively.
People who have a Rs 1500 prize bond can get Rs 30,00,000, 10,00,000, or 18,500.
For the first, second, and third places, people holding a prize bond of Rs 7500 can collect Rs 1,50,00,000, 50,00,000, and 93,000 respectively.
For the first, second, and third places, anyone holding a prize bond of Rs 15000 can receive Rs 3,00,00,000/-, 1,00,00,000/-, and 1,85,000/-, respectively.
For the first, second, and third places, anyone having a prize bond of Rs 25000 might receive Rs 5,00,00,000/-, 1,50,00,000/-, and 3,12,000/-, respectively.
Note: The Pakistani government has decided to phase out reward bonds with a denomination of Rs 25,000.
For the first, second, and third places, anyone holding a prize bond of Rs 40,000 (premium) can receive Rs 8,00,00,000/-, Rs 3,00,00,000/-, and Rs 5,00,000/-, respectively.
This online portal also allows you to view the calendar of all scheduled drawings for the year 2021. This online service also allows you to check the date of any prize bond draw held in the preceding year with a few clicks on your smartphone.
The process of obtaining any information on a prize bond draw has become simple thanks to this internet tool. To check the outcomes of any prize bond draw, you don’t need to go through any complicated procedures. You can acquire the error-free results of prize bond draws with just a few taps on your mobile. Regardless of whether you enter the current date or the date of a previous draw, you will receive accurate results in a matter of seconds.
This internet service has also allowed you to abandon the traditional technique of inspecting prize bonds, which required you to purchase a list from a market and go through it on your own. Simply input your prize bond number and press the enter key, and the results will appear instantaneously on your screen.
The guidelines below will show you how to check your reward bond quickly and conveniently.
- When you’re finished, type in the date of the prize bond draw in Pakistan.
- Now type in your prize bond number or a sequence of reward bonds (in case you have Prize Bond in series). From 110000 to 110099, for example.
- You may also check numerous prize bonds at once by entering all of the numbers in the appropriate boxes and then pressing the search button to start the procedure. In the blink of an eye, you’ll have the answers to your questions.