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Re: NS&I rates
Posted: July 11th, 2020, 7:13 pm
by PinkDalek
The FSCS leaflet
https://www.fscs.org.uk/globalassets/ba ... eaflet.pdf includes:
About FSCS
FSCS is here to protect your money. It is the body which gives you automatic protection up to £85,000 if your bank, building society or credit union goes out of business; and you’ll normally get your money back within seven days. FSCS is funded by the financial services industry and is free to consumers. So, whatever your money is for, it’s good to know it’s protected. ...
How long would it take to get my money back?
In most cases, for deposits, FSCS aims to pay compensation within seven days of a bank, building society or credit union failing. We will pay any remaining deposit claims, which are likely to be more complex, within 15 working days. ...
The FSCS is not operated by nor guaranteed by ‘The Government’.
Whereas NS&I products are backed by HM Treasury.
I wasn’t merely commenting on your post (although I felt it was adding to the confusion) as you too were talking about Government guarantees, which aren’t relevant re the £85,000 and the 7 days.
The two issues were getting conflated (in the modern sense).
Re: NS&I rates
Posted: July 11th, 2020, 7:19 pm
by AleisterCrowley
Dod101 wrote:
I have quite a lot of index linked N S & I certs and I just let them roll over every three years. The interest is not great but at least there is some ...
Dod
I've got a couple of NS Index Linked - the interest is now effectively zero !
I think it's 0.01%, so a quid for each £10,000
Re: NS&I rates
Posted: July 11th, 2020, 9:00 pm
by Dod101
Well I have about a dozen certs all due at different times and it would hardly be surprising if inflation did not rear its head at some point in the not too distant future so I will happily stick with them. In any case we are more or less retaining purchasing power if nothing else (and currently there is nothing else!)
Dod
Re: NS&I rates
Posted: July 11th, 2020, 9:17 pm
by mc2fool
AleisterCrowley wrote:I've got a couple of NS Index Linked - the interest is now effectively zero !
I think it's 0.01%, so a quid for each £10,000
The
real interest rate is effectively zero -- which is better than other accounts have offered over
most of the last decade when savings accounts have been offering
negative real interest rates. And those were taxable too, whereas the NS&I linkers are tax free.
As it happens, CPI is 0.5% right now so it's possible to get positive real interest rates at the moment, but that's (mostly) not been the norm since the global financial crises.
Re: NS&I rates
Posted: July 11th, 2020, 9:21 pm
by Bouleversee
I thiught the most recent cpi rate was 0.7%.
Re: NS&I rates
Posted: July 11th, 2020, 9:25 pm
by mc2fool
Bouleversee wrote:I thiught the most recent cpi rate was 0.7%.
That's CPIH.
https://www.ons.gov.uk/economy/inflatio ... on/may2020
Re: NS&I rates
Posted: July 12th, 2020, 9:35 am
by AF62
PinkDalek wrote:The FSCS leaflet
https://www.fscs.org.uk/globalassets/ba ... eaflet.pdf includes:
About FSCS
FSCS is here to protect your money. It is the body which gives you automatic protection up to £85,000 if your bank, building society or credit union goes out of business; and you’ll normally get your money back within seven days. FSCS is funded by the financial services industry and is free to consumers. So, whatever your money is for, it’s good to know it’s protected. ...
How long would it take to get my money back?
In most cases, for deposits, FSCS aims to pay compensation within seven days of a bank, building society or credit union failing. We will pay any remaining deposit claims, which are likely to be more complex, within 15 working days. ...
The FSCS is not operated by nor guaranteed by ‘The Government’.
Whereas NS&I products are backed by HM Treasury.
I wasn’t merely commenting on your post (although I felt it was adding to the confusion) as you too were talking about Government guarantees, which aren’t relevant re the £85,000 and the 7 days.
The two issues were getting conflated (in the modern sense).
So if there is a run on a bank, which then escalates to all of them such to such an extent that the government couldn't step in, then does the FSCS have a big stack of cash in an underground vault to cover everyone's £85k?
Re: NS&I rates
Posted: July 12th, 2020, 9:37 am
by Bouleversee
p.
So it is. I didn't notice the H when I looked up CPI a few days ago and may not have read as far as that short reference to CPI at the bottom.. What is the point of measuring inflation without including housing costs whilst including gin etc? What is CPIH used for, then, and RPI for that matter? Why do we need so many indices? All I know is that my outgoings have increased a lot more than any of them.
Re: NS&I rates
Posted: July 12th, 2020, 9:57 am
by stevensfo
Bouleversee wrote:p.
So it is. I didn't notice the H when I looked up CPI a few days ago and may not have read as far as that short reference to CPI at the bottom.. What is the point of measuring inflation without including housing costs whilst including gin etc? What is CPIH used for, then, and RPI for that matter? Why do we need so many indices? All I know is that my outgoings have increased a lot more than any of them.
I guess it's not easy to arrive at an inflation figure that represents everyone equally. Somebody who commutes via public transport may be affected differently to someone who drives etc. But as a rule of thumb, I stick to the RPI and add 1%. Seems closer to reality than the CPI.
Steve
Re: NS&I rates
Posted: July 12th, 2020, 10:10 am
by PinkDalek
So if there is a run on a bank, which then escalates to all of them such to such an extent that the government couldn't step in, then does the FSCS have a big stack of cash in an underground vault to cover everyone's £85k?
I was attempting to clarify a couple of things in a reply to mp (who I didn’t quote second time around) but not the Armageddon scenario.
I think the order is the FSCS reserves to cover losses, wherever held, then an attempted call on the relevant institutions & then, as you’ve previously suggested, we’d be looking to the Government.
If that fails, dig for victory.
Re: NS&I rates
Posted: July 12th, 2020, 1:04 pm
by DrBunsenHoneydew
Bouleversee wrote: What is CPIH used for, then, and RPI for that matter? Why do we need so many indices? All I know is that my outgoings have increased a lot more than any of them.
There is a plan afoot to replace RPI with CPIH eventually.
Re: NS&I rates
Posted: July 17th, 2020, 9:05 am
by mike
Well, this should ensure rates stay where they are. Perhaps even the return of Index-Linkers
Savers have been boosted after the Government-owned National Savings & Investments was ordered to dramatically increase customer deposits.
NS&I has been asked to bring in net deposits of £35bn by next April to help the Government fund the costs of coronavirus recovery schemes. Its previous target was to raise £6bn this financial year.
Analysts said this six-fold increase would prevent savings rates, which have collapsed since the start of the pandemic, from falling further.
Full story is paywalled, but if you have a subscription
https://www.telegraph.co.uk/personal-ba ... -six-fold/
Re: NS&I rates
Posted: July 18th, 2020, 4:41 pm
by yorkshirelad1
mike wrote:Well, this should ensure rates stay where they are. Perhaps even the return of Index-Linkers
Savers have been boosted after the Government-owned National Savings & Investments was ordered to dramatically increase customer deposits.
NS&I has been asked to bring in net deposits of £35bn by next April to help the Government fund the costs of coronavirus recovery schemes. Its previous target was to raise £6bn this financial year.
Analysts said this six-fold increase would prevent savings rates, which have collapsed since the start of the pandemic, from falling further.
Full story is paywalled, but if you have a subscription
https://www.telegraph.co.uk/personal-ba ... -six-fold/
Here's a similar article that isn't paywalled (there was a similar story in today's Times Sat 18 July 2020 but The Times paywalled too):
https://www.yourmoney.com/saving-bankin ... ng-around/
Essentially, for NS&I, the govt have increased the annual borrowing limit from £6bn to £35bn, and also suspended the "value indicator", which prevents NS&I from being too generouse with its interest rates, for anotehr 3 months.
And the horse's mouth:
https://nsandi-corporate.com/news-resea ... rovisional
Re: NS&I rates
Posted: July 18th, 2020, 4:50 pm
by PinkDalek
yorkshirelad1 wrote:[Essentially, for NS&I, the govt have increased the annual borrowing limit from £6bn to £35bn, and also suspended the "value indicator", which prevents NS&I from being too generouse with its interest rates, for anotehr 3 months. ...
Thanks for the horse if the mouth, which is often the best place to look.
Another 3 months is already running though, in view of the:
This suspension has been extended for a further three months to 30 September 2020 to reflect ongoing exceptional market conditions.
Re: NS&I rates
Posted: July 24th, 2020, 12:12 pm
by yorkshirelad1
In today's (24 July 2020) Chronic Investor, Bearbull has an article (p. 15) on NS&I's activities at the moment
The article is on their website but it's paywalled
https://www.investorschronicle.co.uk/co ... rtunities/
Re: NS&I rates
Posted: July 24th, 2020, 1:55 pm
by mike
You can get round the IC's paywall in the same way as the FT's using Google. Best to do it in private browsing/inognito etc so cookies aren't stored
Follow the first link here
https://www.google.com/search?client=fi ... ortunities
Re: NS&I rates
Posted: July 25th, 2020, 10:56 am
by scotia
So it appears NS&I are already ahead of the revised target. First quarter net financing is £14.5B , with a full year target of £35B. So I fear they won't be in a hurry to increase interest rates, and unfortunately the reverse still seems a possibility.
Re: NS&I rates
Posted: July 27th, 2020, 12:23 am
by yorkshirelad1
And another article on NS&I re Premium Bonds in Saturday's FT (Sat 25 July 2020)
Investors put faith in premium bond jackpot (FT Money, page 3)
via Google:
https://www.google.com/search?&q=site%3 ... mium+bonds
Re: NS&I rates
Posted: July 27th, 2020, 8:12 am
by Redmires
One gets the feeling that they would meet the revised target overnight if they doubled the limit from £50k to £100k.
Re: NS&I rates
Posted: September 21st, 2020, 10:30 am
by mike
Good grief
The rates on all products are being slashed from 24 November
eg The rate on Income Bonds is being reduced from 1.16% to 0.01%, Direct Saver from 0.90 to 0.10%
https://www.nsandi.com/our-products
Strange, HMG need funds at the moment, and this will just get people to move their money. Time to look for something else !