NS&I rates
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- Lemon Half
- Posts: 6263
- Joined: November 4th, 2016, 11:35 am
Re: NS&I rates
Ouch
Having just dealt with Nationwide (moved ISA funds to Paragon @ 0.85%) I now have to deal with NSANDI
Having just dealt with Nationwide (moved ISA funds to Paragon @ 0.85%) I now have to deal with NSANDI
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- Lemon Slice
- Posts: 972
- Joined: November 4th, 2016, 6:17 pm
Re: NS&I rates
Presumably there will be fewer prizes for those of us who hold Premium Bonds.
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- Lemon Half
- Posts: 7479
- Joined: November 4th, 2016, 6:11 pm
Re: NS&I rates
Yes, prize fund rate down to 1% from 1.4% https://www.lemonfool.co.uk/viewtopic.p ... 54#p341654Mike88 wrote:Presumably there will be fewer prizes for those of us who hold Premium Bonds.
Scott.
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- Lemon Slice
- Posts: 770
- Joined: November 4th, 2016, 10:58 am
Re: NS&I rates
‘Income bonds’ should surely now breach the Trade Descriptions Act. 0.01%!!mike wrote: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 !
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- Lemon Pip
- Posts: 86
- Joined: November 4th, 2016, 10:36 am
Re: NS&I rates
Indeed. I had thought that, in a time of particular fiscal need, a modicum of intelligence was being exhibited by the powers that be, in assembling a warchest of cash from savers, by offering marginally market-leading rates. That policy now apparently blown out of the water.mike wrote: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 !
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- Lemon Quarter
- Posts: 4526
- Joined: November 8th, 2016, 5:01 pm
Re: NS&I rates
Such as what? There doesn't seem to be anything better. I was just about to open an NS&I savings account now that Santander's rate is almost nothing and they charge £5 per month but I won't now. I should have thought the govt. would have needed our deposits. Sounds like they will take the wealth tax route instead in which case they don't need to pay interest..mike wrote: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 !
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- Lemon Quarter
- Posts: 1562
- Joined: November 4th, 2016, 3:54 pm
Re: NS&I rates
I will be putting my money from income bonds into my other existing savings accounts. Most of them cannot be opened by new savers but some are currently paying around 1%.....which is better than nothing.
There are some regular savers still paying 1.5% - 2.75%
There are some regular savers still paying 1.5% - 2.75%
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- Lemon Quarter
- Posts: 1186
- Joined: November 8th, 2016, 2:20 am
Re: NS&I rates
They used to hang robbers!Bouleversee wrote:Such as what? There doesn't seem to be anything better. I was just about to open an NS&I savings account now that Santander's rate is almost nothing and they charge £5 per month but I won't now. I should have thought the govt. would have needed our deposits. Sounds like they will take the wealth tax route instead in which case they don't need to pay interest..mike wrote: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 !
The banks and other lenders will be rubbing their hands with the ability to increase their profit margins and bonusses - credit card rates ~20%, overdraft rates ~40% all financed by savers money for nothing!
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- Lemon Half
- Posts: 5676
- Joined: November 21st, 2016, 4:26 pm
Re: NS&I rates
I think you need to have a look at how profitable banks are. Interest rates this close to zero really hurt bank's margins, and that's before any provisions for bad debts etc.supremetwo wrote: The banks and other lenders will be rubbing their hands with the ability to increase their profit margins and bonusses - credit card rates ~20%, overdraft rates ~40% all financed by savers money for nothing!
Unpopular as it may be you really shouldn't expect to get any interest with base rate here. The costs of providing current accounts are quite substantial and very few are willing to pay for it. Savings accounts are less costly but savers are having to cross subsidise other bank customers.
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- Lemon Slice
- Posts: 368
- Joined: June 9th, 2017, 8:51 am
Re: NS&I rates
The government is probably right to discourage saving at the moment and get all that money circulating in the economy, so get out and spend, all you NS&I customers!
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- Lemon Quarter
- Posts: 1655
- Joined: November 4th, 2016, 6:26 pm
Re: NS&I rates
Maybe they have just hoovered up all they want. Not only all the accounts slashed as well as Junior ISAs - premium bond 'effective' rate of return has fallen substantially with less prizes against a back drop of increased bond holdings.
The knock-on impact to other banking institutions will now play out. We have already seen Marcus after its initial flourish backing out. My 1 year bond with them matures1 October and will be looking for new homes for a fair amount of cash from them and NSI in Oct/Nov.
Fortunately the 'bank of mum and dad' is paying divis as son and family looking to move into larger place in London in next few months. That's a relief.
T7
The knock-on impact to other banking institutions will now play out. We have already seen Marcus after its initial flourish backing out. My 1 year bond with them matures1 October and will be looking for new homes for a fair amount of cash from them and NSI in Oct/Nov.
Fortunately the 'bank of mum and dad' is paying divis as son and family looking to move into larger place in London in next few months. That's a relief.
T7
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- Lemon Slice
- Posts: 761
- Joined: November 19th, 2016, 1:35 pm
Re: NS&I rates
Parky wrote:The government is probably right to discourage saving at the moment and get all that money circulating in the economy, so get out and spend, all you NS&I customers!
The Times story this morning tends to confirm both of these observations.terminal7 wrote:Maybe they have just hoovered up all they want.
https://www.thetimes.co.uk/edition/news ... -r56jb0bfq (Paywalled after the first 4 paragraphs)NS&I, which is backed by the Treasury, said that it had no choice but to act because savers had put away billions more than usual during the Covid-19 lockdown, which left it in danger of breaching its government-mandated funding limit for the year.
And from the Guardian
https://www.theguardian.com/money/2020/ ... count-isasNS&I is set a financing target by the Treasury each year. This was raised from £6bn to £35bn after the pandemic hit to help the government pay for its crisis measures, but between April and June £19.9bn flowed into accounts and demand has remained similarly high over the summer.
But how many are going to leave their money in NS&I ? A tidy sum of £100,000 will pay .... drum-roll .... £10 per annum at 0.01% in the Income Bonds. Surely there will be an outgoing flood.
[Edited for typos]
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- Lemon Quarter
- Posts: 4526
- Joined: November 8th, 2016, 5:01 pm
Re: NS&I rates
I think the article in The Times also said that the banks would follow suit (negative interest rates coming up?) so people with large sums to invest will be up a gum tree unless they wish to gamble on the stock exchange and risk losing.
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- Lemon Half
- Posts: 7479
- Joined: November 4th, 2016, 6:11 pm
Re: NS&I rates
Or alternatively, invest in the stock market for higher income and long term gain, while accepting the risk of short term reduction in capital.Bouleversee wrote:I think the article in The Times also said that the banks would follow suit (negative interest rates coming up?) so people with large sums to invest will be up a gum tree unless they wish to gamble on the stock exchange and risk losing.
Scott.
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- Lemon Half
- Posts: 6263
- Joined: November 4th, 2016, 11:35 am
Re: NS&I rates
I'm looking at ERNS (again)
https://www.ishares.com/uk/individual/e ... rough=true#/
Obviously not 'risk free'...
https://www.ishares.com/uk/individual/e ... rough=true#/
Obviously not 'risk free'...
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- Lemon Half
- Posts: 5676
- Joined: November 21st, 2016, 4:26 pm
Re: NS&I rates
People with large sums to invest don't put money into bank accounts or national savings accounts. They are "savers". "Investors" are something completely different. Savers with large (or indeed small) sums to allocate may have few choices that meet their objectives, but that is a different statement.Bouleversee wrote:I think the article in The Times also said that the banks would follow suit (negative interest rates coming up?) so people with large sums to invest will be up a gum tree unless they wish to gamble on the stock exchange and risk losing.
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- Lemon Quarter
- Posts: 4526
- Joined: November 8th, 2016, 5:01 pm
Re: NS&I rates
Not all of us have a long term left and I am pretty sure many of my holdings are more likely to go bust than recover in my lifetime, if at all. As for the higher income, that's fine till Covid comes along and many dividends disappear altogether. There comes a time in your life when you no longer want to risk all your capital and may need access to large sums of cash for care/help of one sort or another.swill453 wrote:Or alternatively, invest in the stock market for higher income and long term gain, while accepting the risk of short term reduction in capital.Bouleversee wrote:I think the article in The Times also said that the banks would follow suit (negative interest rates coming up?) so people with large sums to invest will be up a gum tree unless they wish to gamble on the stock exchange and risk losing.
Scott.
Having seen so many dividends axed, deferred or reduced and so many jobs lost, I should have thought most people, especially the elderly, would want to have quite a large buffer in cash which could be easily accessed. And don't forget that there are plenty of people who have done quite well with their savings when interest rates were high but know nothing about the stock market and it would be dangerous for them to start dabbling at a time when it is even more difficult than usual to guess how share prices will move and what income they will produce.
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- Lemon Quarter
- Posts: 4526
- Joined: November 8th, 2016, 5:01 pm
Re: NS&I rates
If you want to nit-pick, I call savings what you put aside from your income which can be invested in any way you think will give the best return till you want to draw an income from the capital sum thereby accumulated which can still be invested in whatever way suits your then circumstances best and gives easy access. I am no longer a saver. I am a spender and a giver but I don't like losing capital or income and I seem to have done both recently. A lot of people have gone entirely into cash when markets started to fall and bought back into shares when prices started to recover. Are they savers or investors? Does it really matter?dealtn wrote:People with large sums to invest don't put money into bank accounts or national savings accounts. They are "savers". "Investors" are something completely different. Savers with large (or indeed small) sums to allocate may have few choices that meet their objectives, but that is a different statement.Bouleversee wrote:I think the article in The Times also said that the banks would follow suit (negative interest rates coming up?) so people with large sums to invest will be up a gum tree unless they wish to gamble on the stock exchange and risk losing.
I shall hang on to my NS&I index-linked certificates as CPI might produce a better rate than any savings account but otherwise try to find time to spend money on house improvements/maintenance/equipment, perhaps pay for Uni fees or other things needed by the family, donate to charities etc. Not having had a holiday for 12 years, I had planned to splurge in that direction but that is now out of the question. What I don't have any enthusiasm for is buying more shares to keep track of.