An investigation into Bonus Bonds prizes reveals near-impossible odds on big prizes and long odds on small prizes
A statistical investigation by MoneyHub into Bonus Bonds suggests the average bond holder is failing to keep up with
inflation and that $0 is the most common prize won. Bonus Bonds fully discloses that 99.91% of all prizes awarded are
worth $50 or below. With $3.4 billion dollars invested, Bonus Bonds is upfront in confirming the chance of any Bonus Bond winning a prize will range between 1 in 20,000 to 1 in 35,000. MoneyHub’s research looked at the odds of winning each prize, the effects of the inflation rate on Bonus Bonds and
investment alternatives.
MoneyHub’s senior research Christopher Walsh said:
“Each Bonus Bond has a one-in-three-billion chance of winning the monthly $1,000,000 prize; winning a $20 prize had a 1
in 28,632 chance”
“98% of Bonus Bonds win a cash prize of $0, and with inflation running around 2%, a $1,000 Bonus Bonds investment would
be worth $200 less after 10 years (in real terms) if an investor failed to win a prize in that time”.
“With Bonus Bonds assigning cash prizes at a rate of 1.4% of total money invested, a $10,000 Bonus Bonds investment is
estimated to win four $20 cash prizes per year, generating an $80 return on investment. The same investment in a term
deposit interest rate, which is certain to be paid, could earn $300+ after tax”.
MoneyHub published a number of prize winning forecasts basing its research on the prize winnings reported for November
2017. The dedicated page would be updated on an ongoing basis.
About MoneyHub.co.nz: MoneyHub was established in 2017 and is dedicated to making financial product choices easier.
MoneyHub is a journalist online resource with the aim of providing New Zealanders with the best money guides, tips and
tools.
Full story link: Bonus Bonds