The value of awards paid to prize bond holders in the first six months of the year rose by 11 per cent following an increase in the uptake of bonds by investors opting for stability in their portfolios as global stock markets tumbled in the period.

Since the beginning of the year, 41,000 prize bond holders received over €4.5 million in tax-free cash prizes, an increase of 11 per cent in the value paid out during the same period last year. The Prize Bond Company Ltd says it expects to pay out over €9 million in prizes in the full year.

"This increase in value of prize payments is directly attributable to the increase in sales in prize bonds," said Prize Bond Company chairman Mr Michael O'Keeffe.

"The chance to win tax-free, State-guaranteed cash prizes of up to €150,000 without losing one's investment has made prize bonds a popular alternative to ordinary savings accounts. We find that our investors are increasingly including prize bonds as part of their savings portfolios."

The unit price of a prize bond is €6.25 with a minimum purchase of four units for €25. All prize bonds enter a weekly cash draw to win more than 1,600 prizes and a monthly jackpot of €150,000. The bonds do not offer any interest earnings but, on average, holders earn around 2.75 per cent in prizes every year, the company says.

Bonds can be purchased at post offices or by direct debit or credit card at Callsave 1850 67 1000. Irish residents can also purchase bonds at www.prizebonds.ie.