Are Bonus Bonds legit?

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Forums › Finance and wealth management › Are Bonus Bonds legit?

Rikkitic

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#220373 8-Aug-2017 13:37

Several years ago I bought several thousand dollars worth of Bonus Bonds. For years afterwards I received at least $20 almost every month. Once I got $50, a few times $40. It was rare that I missed a month, and I don't think I ever went two months in succession without a win.

Several months ago I noticed that the wins had ceased from around October or November. Six months went by with nothing. I thought this was strange so I contacted Bonus Bonds just to make sure they still had my bonds registered. They did. The very next month I received $20. Since then nothing again.

I remember reading somewhere that the amount of bonds I have should be enough to ensure a prize on most months. I do realise this is a draw and there is no guarantee, but something does definitely seem to have changed.

So is this game rigged or not? How is it that I win almost every month for years, and then practically nothing? Who is the authority of this? How can one be certain that the draws are honest? Suggestions welcome.

Plesse igmore amd axxept applogies in adbance fir anu typos

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#1841111 8-Aug-2017 13:46

As more and more bonus bonds are purchased by other people, if the number of bonus bonds you hold remains the same, your chance of winning will decrease.

muppet

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#1841113 8-Aug-2017 13:47

I'd give Satan a call.

Or, if you can't raise him, give SkyTV a call. People seem to think they're Satan these days.

Jase2985

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#1841119 8-Aug-2017 13:51

"For most prize draws over the next year, we expect that the chance of any Bonus Bond winning a prize will range between 1 in 20,000 to 1 in 35,000. The governing document requires us to manage the prize pool so that your chances of winning a prize are no better than 1 in 9,600"

you may have been beating the odds for the first year, but now the odds are evening themselves back out again.

you have several thousand bonds, others probably have millions.

MikeB4

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#1841124 8-Aug-2017 13:53

Rikkitic:

Several years ago I bought several thousand dollars worth of Bonus Bonds. For years afterwards I received at least $20 almost every month. Once I got $50, a few times $40. It was rare that I missed a month, and I don't think I ever went two months in succession without a win.

Several months ago I noticed that the wins had ceased from around October or November. Six months went by with nothing. I thought this was strange so I contacted Bonus Bonds just to make sure they still had my bonds registered. They did. The very next month I received $20. Since then nothing again.

I remember reading somewhere that the amount of bonds I have should be enough to ensure a prize on most months. I do realise this is a draw and there is no guarantee, but something does definitely seem to have changed.

So is this game rigged or not? How is it that I win almost every month for years, and then practically nothing? Who is the authority of this? How can one be certain that the draws are honest? Suggestions welcome.

If they were not legit they would have fallen foul of the Commerce Commission, Reserve Bank and the Banking Ombudsman by now.

mattwnz

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#1841140 8-Aug-2017 13:58

Sam91:

As more and more bonus bonds are purchased by other people, if the number of bonus bonds you hold remains the same, your chance of winning will decrease.

Not sure that is correct. From my understanding, the money people have in bonus bonds makes interest, and that money is pooled and used to pay out winners. When interest rates are very low, like they are now, the amount of lower prizes decreases, as less money in the pool to pay out. This affects smaller prizes more, because they are still paying out the top prizes. Yes I have noticed there have been very few wins over the last few years. I only have a thousand in it myself, and it is years since I won $20. I would have closed the account, but it needs me to fill in different forms and etc.

Jase2985

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#1841144 8-Aug-2017 14:03

mattwnz:

Sam91:

As more and more bonus bonds are purchased by other people, if the number of bonus bonds you hold remains the same, your chance of winning will decrease.

Not sure that is correct. From my understanding, the money people have in bonus bonds makes interest, and that money is pooled and used to pay out winners. When interest rates are very low, like they are now, the amount of lower prizes decreases, as less money in the pool to pay out. This affects smaller prizes more, because they are still paying out the top prizes. Yes I have noticed there have been very few wins over the last few years. I only have a thousand in it myself, and it is years since I won $20. I would have closed the account, but it needs me to fill in different forms and etc.

http://www.bonusbonds.co.nz/winningWithBonusBonds.html

there are more prizes but they are low value ones

xpd

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#1841152 8-Aug-2017 14:13

Hope theyre legit, had some since I turned 1. :D

Gavin / xpd / FastRaccoon / Geek of Coastguard New Zealand

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Oblivian

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#1841158 8-Aug-2017 14:18

My family (worked in bank) was a large believer of them so got them when I was a wee fella in lieu of birthday gifts and such.

A whopping $90 sitting there. And me and my father got $20 each within 2 days of each other (I forgot to cash it so it went in as more bonds) about 3 years back after adding updating ANZ contact details where they linked it to our accounts after doing the verification updates.

But in reality, waste of time. No better off given most the 'savings' accounts are as little as .2% interest these days.

Lias

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#1841185 8-Aug-2017 14:43

I've got $186 worth dating back many years for childhood gifts etc.

I'm a geek, a gamer, a dad, a Quic user, and an IT Professional. I have a full rack home lab, size 15 feet, an epic beard and Asperger's. I'm a bit of a Cypherpunk, who believes information wants to be free and the Net interprets censorship as damage and routes around it. If you use my Quic signup you can also use the code R570394EKGIZ8 for free setup.

wellygary

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#1841190 8-Aug-2017 14:55

Bonus Bonds are an interesting quirk of history that would be classed as tax avoidance if someone tried to set it up now :)

They are a great place to stash money to keep it out of the hands of government departments who class interest as a source of income

(they are "winnings" similar to a lotto payout),

But they are a rotten place if you want to actually make a return, as fees and tax gobble up almost 50% of the funds return, so you get much less in the hand compared with a simple term deposit...

Coil

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#1841197 8-Aug-2017 15:05

wellygary:

But they are a rotten place if you want to actually make a return, as fees and tax gobble up almost 50% of the funds return, so you get much less in the hand compared with a simple term deposit...

It is just funding ANZ's own term deposit with our money..
Well thats how banks work anyway. Just a way for them to con people into depositing money for them to use and make more off. And we get a little prize! yay!

Rikkitic

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#1841218 8-Aug-2017 15:30

Thanks for the insights. It helps to have an idea how it all works. I know ANZ charge exorbitant 'management' fees and I am not a fan of them anyway, but I had to park the money somewhere and inertia keeps it there now. I just wondered why there had been such a change in the pay-out pattern.

Plesse igmore amd axxept applogies in adbance fir anu typos

GeoffisPure

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#1841276 8-Aug-2017 16:29

I stopped buying Bonus Bonds a while back when the odds of winning significantly reduced.

mattwnz

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#1841287 8-Aug-2017 16:37

Inflation is probably eating away the value of many peoples deposited money if you don't win. But the alternative is something like lotto.

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#1841332 8-Aug-2017 17:51

All the figures are in the product disclosure statement

http://bonusbonds.co.nz/pdfs/productDisclosureStatement2016.pdf

As mentioned previously, as BB mainly invests in cash assets, the returns have been low given the current low interest rate environment. Unfortunately it makes the management fees look disproportionately out of whack as a result.

Better investment than Lotto? Maybe as your capital isn't lost (except for inflation)

Better investment than a term deposit? Not unless you win a big prize but your funds are tied up with a TD

Better investment than a specialist savings account. No

Better investment than an oncall/online type savings account. Yes

Also note that your newly purchased bonds aren't eligible for a draw until you've held them for a full calendar month.

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