asked the Minister for Finance if he will increase the effective rate of interest of 7½ per cent used in determining the prize fund for prize bonds in view of the fact that interest rates at the moment on other Government stocks are much higher.
Written Answers. - Prize Bonds.
322.
Current interest rates are not of primary relevance to holders of non-interest bearing prize bonds, most of whom are attracted to such bonds in the hope of earning one of the substantial tax-free prizes which amount annually to about £4 million. The scheme is kept under continuous review. The current rate of 7½ per cent was increased from 6¼ per cent in July 1980 when the scheme was revised and weekly draws introduced.