NS&I Announces Reduction in Interest Rates

[Stompa]

Watch out for the big exodus in funds.

Well they seem to have failed in their promise to 'For withdrawals up to and including £50,000 you'll receive the money in your bank account within the next banking day'. Perhaps they've run out of money.....

[absolutezero]

Thank heavens for my long held (and rolled forward) Index linked savings certificates.

Best wishes,

Steve

Hear, Hear! At least they will keep up with inflation, we hope.

Albeit CPI - they shafted us with removing the RPI linking and replaced it with the (usually lower) CPI measure.

[mike]

Watch out for the big exodus in funds.

Well they seem to have failed in their promise to 'For withdrawals up to and including £50,000 you'll receive the money in your bank account within the next banking day'. Perhaps they've run out of money.....

I gave a withdrawal instruction late morning on Monday this week from my Income Bonds, and the funds were in my Santander bank account late afternoon yesterday (Tuesday), so for me, it did work as advertised.

[Stompa]

Well they seem to have failed in their promise to 'For withdrawals up to and including £50,000 you'll receive the money in your bank account within the next banking day'. Perhaps they've run out of money.....

I gave a withdrawal instruction late morning on Monday this week from my Income Bonds, and the funds were in my Santander bank account late afternoon yesterday (Tuesday), so for me, it did work as advertised.

Hmmm, I gave my instruction at a similar time, still no sign of it in Santander.

[mutantpoodle]

i gave instruction monday afternoon...money appeared in my account tuesday pm
now moved on again as nomiated acct doesnt pay interest

but they will see mass withdrawals and I imagine they will be surprised!!

[scrumpyjack]

i gave instruction monday afternoon...money appeared in my account tuesday pm
now moved on again as nomiated acct doesnt pay interest

but they will see mass withdrawals and I imagine they will be surprised!!

HMG won't be worried, they'll just print more money!

No point in withdrawing yet as you still get 1% for another 2 months.

[mutantpoodle]

No point in withdrawing yet as you still get 1% for another 2 months.[/quote]

indeed but in the meantime an alternative currently paying decent (Ha Ha Ha) rate might disappear

for example
The Skipton opened an account paying 1.2% last week
i opened one each for all family with +/= £10 in each
now that account not open to new customers
but I can move money into it!

[PinkDalek]

No point in withdrawing yet as you still get 1% for another 2 months.

I'm not withdrawing yet, fwiiw, but that's the rate for their Direct Saver 1.00% gross/AER, whereas Income Bonds remain at 1.15% gross / 1.16% AER until 23 November 2020:

https://www.nsandi.com/interest-rates

[Gan020]

My notes show that at the end of 2019, NSandI had £179b invested with them of which £89b premium bonds, £40b in the direct savers, £22b in savings certificates and £20b in guaranteed bonds. The rest if Junior ISA's and stuff.

Since 2019 NSandI have taken in £30b and their target for the year is £35b. Premium bonds are flowing in at the rate of £1.5b a month so say £9b for the last 6 months which would take them £4b over their total.

I would guess by now direct savers are about £60b and I imagine 90%+ of this is going to flow out, which leads me to think either NSandI have changed their target or I can't do maths. Or perhaps we are going to see another turnaround by NSandI as they realise more people are moving their money out than they think. Or perhaps they are going to launch some new products which offer fixed long term rates which would better suit the governement financing needs.

[Bouleversee]

I'm not so sure about your estimates of money flowing out. Where to?

[richlist]

I'm my case to any account that pays more than 0.01%
Hopefully there will still be a few.

[Clariman]

I'm not so sure about your estimates of money flowing out. Where to?

Well I've moved 2 x 20K into easy access cash ISAs already. The rest will go in a 2 year Fixed account with Aldemore over the next week. I'm not leaving 1 penny at 0.01%

[AleisterCrowley]

I opened a Paragon ISA account recently at 0.85% fixed for one year - that was a transfer from Nationwide who dropped rates massively.
Not sure if I could do another transfer in from NS&I as they are often restricted to account opening.

[Stompa]

I opened a Paragon ISA account recently at 0.85% fixed for one year - that was a transfer from Nationwide who dropped rates massively.
Not sure if I could do another transfer in from NS&I as they are often restricted to account opening.

The 1 year fixed seems to have ceased to exist, but for the 2 year it says: "You can make additional deposits and transfers into your new account for 15 business days after your opening deposit. After this you can’t make any further deposits or transfers into your account.", so maybe it's the same?

[AleisterCrowley]

I've just moved my entire NS&I Direct ISA into a Paragon 2yr -hopefully that is allowed i.e. two transfers in a tax year. I'm pretty sure it is, and it's new subscriptions rather than opening new ISAs via transfer in

[Gan020]

Let's see what happens. NSandI instant access rate moving from 1.16% to 0.01%
Current best buys none of which have fallen since NSandI annoucement a week ago
5yr 1.60%
3yr 1.45%
2yr 1.36%
1yr 1.30%
Instant Access 0.8% (there are many options between 0.7% and 0.8%)

[Clariman]

I had a call from NS&I this morning to confirm that it was definitely me who was closing my income bond and transferring all the money out. I said that I couldn't be the only one, to which they replied "it's causing carnage here"

[mutantpoodle]

I had a call from NS&I this morning to confirm that it was definitely me who was closing my income bond and transferring all the money out. I said that I couldn't be the only one, to which they replied "it's causing carnage here"

so what do you do when THEY ring you
they always want security so ask you for your security details..
but how do you establish they are who they say they are??...most of the time they dont even give a full name let alone proof!!

'they' refers to any of the banks/B soc etc...so I not just having a go at NSand I

[absolutezero]

I had a call from NS&I this morning to confirm that it was definitely me who was closing my income bond and transferring all the money out. I said that I couldn't be the only one, to which they replied "it's causing carnage here"

They will be having to put their rates up again to meet their funding targets!

[kempiejon]

so what do you do when THEY ring you
they always want security so ask you for your security details..
but how do you establish they are who they say they are??...most of the time they dont even give a full name let alone proof!!

'they' refers to any of the banks/B soc etc...so I not just having a go at NSand I

Quite, a few years ago HSBC phoned me on the number they have on file for me and asked me to identify myself to them. Of course I didn't I told them if they have questions they should secure message me or write to me.

Anyhow back to NS&I, I only have PBs and a Direct Saver I opened just a few weeks ago when they looked like a best buy rate. Seems my cash account picking is as stylish as my share picking, just after I buy the value falls over.