Jonathan O'Brien
Question:202. Deputy Jonathan O'Brien asked the Minister for Finance the reason the quantity of Ireland State Savings prize bonds prizes in a fiscal year has decreased while income for same has increased. [43322/18]
View answerTuesday, 23 October 2018
Questions (202)
Written answers
I am answering this question on the basis of fiscal year 2017. Under Prize Bonds the number of prizes is determined by a variable percentage rate applied to the value of Prize Bonds outstanding. The variable percentage rate set to calculate the Prize Bond Fund was adjusted from 0.85% to 0.50% in August 2017. The interest rate reduction reflected changes across the retail savings market and the fall in the cost of borrowing by the State. All changes in rates seek to maintain the balance of remaining competitive, providing good value for the holders of Prize Bonds while also remaining conscious of the cost to the taxpayer.
Notwithstanding the decline in the variable percentage rate, the balance of savings in Prize Bonds increased by approximately €0.3 billion to €3.2 billion in 2017, which was an increase of 10%.