The Prize Bond Company is to introduce a Christmas jackpot prize of €1 million to mark the 50th anniversary of the prize bond scheme in Ireland.
In a 1950s themed anniversary event yesterday to celebrate 50 years since the first prize draw, the company, which is a joint venture between An Post and Fexco, also announced that it is to increase its monthly prize from €150,000 to €500,000 for the other 11 months of each year.
The €1 million prize draw will take place on the last Friday before Christmas Day.
The new prize bond structure will begin on Friday, with the existing weekly prizes ranging from €75 to €20,000, to be retained. Each prize bond costs €6.25 and is advertised as a risk-free State-guaranteed product, with more than 2,600 prizes guaranteed weekly.
At yesterday's anniversary event, chairman of the Prize Bond Company Michael O'Keeffe said: "Prize bonds have become an integral part of Irish society. Irish people both young and old have purchased prize bonds, received them as gifts and included them in their investment portfolios, with prize bond holders spanning the length and breadth of the country."
Unlike the National Lottery or Euromillions prize draws, once a prize bond is purchased it is included in all draws up until the date it is cashed, with the option to redeem prize bond holdings for their full value.
According to Mr O'Keeffe, this is why prize bonds have remained enduringly popular as an investment option.
"The prize bond scheme is in its fourth consecutive year of sales over €100 million. Over the five-year period from 2001-2006, sales have increased by almost 80 per cent. I can safely say that we have come a long way since the top prize of £5,000 in September 1957."
Since its inception, more than one million tax-free cash prizes have been awarded through the scheme, with a value in excess of €250 million.
Its enhanced popularity has been due to the computerisation of the draw in recent years, including an online purchase facility.
Prize bonds form an important part of An Post's financial services, with almost half of prize bond sales taking place there.
There are close to 100 million prize bonds held currently.