Sales of prize bonds rose rapidly in 2003, according to results announced yesterday.

Gross sales rose 62 per cent to €134.5 million after hovering around the €80 million mark for the previous four years. However, prize bond holders cashed €53.8 million of their investments, leaving net sales of €80.7 million, double the comparative figure in 2002. The average size of purchases rose 45 per cent to €676.

Prize bond company chairman Mr Michael O'Keeffe said the figures showed the strength of the company. "The strong gross sales reflect the attractiveness of the prize bonds product as a secure, risk-free, State-guaranteed investment option," he said.

The company's annual report showed that the value of prizes awarded during 2003 rose 16 per cent to €10.83 million, with the number of prizes disbursed rising to 105,322, a jump of 23 per cent.

Prize bonds offer a top prize of €20,000 in each weekly draw, rising to €150,000 in the first week of each month. By the end of the year, the value of the prize bond fund had risen by 21 per cent to €453.8 million.

Sales of prize bonds over the internet rose strongly, up 220 per cent to €3.2 million, although they still account for only a fraction of total sales.

Mr O'Keeffe said a recent survey had shown that 45 per cent of the population had owned prize bonds at some stage.