277. Deputy Brendan Smith asked the Tánaiste and Minister for Finance his views on widely expressed concerns of long-term holders of prize bonds in relation to the inadequate current variable rate of interest and also taking into account that the holders of such bonds have invested long term in such State schemes with benefits to this State [67724/26]

The National Treasury Management Agency (NTMA) has informed me that Retail savings, including Prize Bonds, are an important element of the NTMA’s funding strategy.

In setting rates on Ireland State Savings, including Prize Bonds, the NTMA seeks a balance between providing customers with a safe and competitive savings option and providing long-term value to the Exchequer in terms of managing the cost of borrowing.

The rate set for the Prize Bonds prize fund also reflects the fact that, after an initial holding period of three months, Prize Bonds allow encashment and the return of the person’s investment with 7 days’ notice.

The NTMA increased the variable rate used to calculate the Prize Bond fund from 1% to 1.5% with effect from 1st September 2026. The NTMA also changed the prize structure with effect from 1st September 2026 as follows:

• The weekly draw will have more prizes and higher-value prizes. Based on the current level of Prize Bonds outstanding, 10,000 prizes are expected to be awarded every week.

• A top monthly prize of €500,000 remains in the last weekly draw of every calendar month.

• The top prize in every weekly draw is being doubled from €50,000 to €100,000. Each week there will be 50 prizes of €1,000, in place of the current 20 prizes of €1,000 and 20 prizes of €500.

• The remaining weekly prize fund will be awarded in €100 prizes, which is an increase on the current prize of €75.

That NTMA has also informed me that over 450,000 prizes were awarded in 2025.