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  • FIRST POST
    • Gam2015
    • By Gam2015 15th Oct 16, 8:51 PM
    • 19Posts
    • 1Thanks
    Gam2015
    Moving money from santander 123
    • #1
    • 15th Oct 16, 8:51 PM
    Moving money from santander 123 15th Oct 16 at 8:51 PM
    Currently have 30k+ in my current santander 123 (i know i only get interest on 20k) would it be daft to transfer all my money over to NS&I premium bonds after this months last 3% interest payment.... thanks.
Page 1
    • pip895
    • By pip895 15th Oct 16, 9:00 PM
    • 313 Posts
    • 166 Thanks
    pip895
    • #2
    • 15th Oct 16, 9:00 PM
    • #2
    • 15th Oct 16, 9:00 PM
    Why not just transfer 10k+?
    • YorkshireBoy
    • By YorkshireBoy 15th Oct 16, 9:05 PM
    • 28,346 Posts
    • 16,145 Thanks
    YorkshireBoy
    • #3
    • 15th Oct 16, 9:05 PM
    • #3
    • 15th Oct 16, 9:05 PM
    Currently have 30k+ in my current santander 123 (i know i only get interest on 20k) would it be daft to transfer all my money over to NS&I premium bonds
    Originally posted by Gam2015
    That would depend on your objective wouldn't it? What is your objective? It was interest before (well kind of, because you were wasting £10K potential interest earning funds)...is it still? If so, and you can beat 1.5% AER elsewhere it would be daft to shift it all into PBs, yes.
    after this months last 3% interest payment.... thanks.
    Unless your statement date is the 1st November, the final interest payment will be somewhere between 1.5% and 3% AER.
    • Gam2015
    • By Gam2015 15th Oct 16, 9:15 PM
    • 19 Posts
    • 1 Thanks
    Gam2015
    • #4
    • 15th Oct 16, 9:15 PM
    • #4
    • 15th Oct 16, 9:15 PM
    My statement date is 19th so i should get my last £50 next week... cheers
    • pip895
    • By pip895 15th Oct 16, 9:24 PM
    • 313 Posts
    • 166 Thanks
    pip895
    • #5
    • 15th Oct 16, 9:24 PM
    • #5
    • 15th Oct 16, 9:24 PM
    I am currently thinking of transferring cash into PB's, but I will be leaving 20k in my 123 account - the PB's only work out at just above 1.1% I believe, so why transfer from the 123 - unless you fancy your luck I suppose??
    • Joe_Bloggs
    • By Joe_Bloggs 15th Oct 16, 10:17 PM
    • 4,360 Posts
    • 1,542 Thanks
    Joe_Bloggs
    • #6
    • 15th Oct 16, 10:17 PM
    • #6
    • 15th Oct 16, 10:17 PM
    I think the unspoken issue is that we can't all pull money out of any institution in a way that may destabilize the banking system. If our high street banks are to cut rates at the behest of the Governor of the bank of England then clearly the team at the bank of England have some idea as to where they expect people to move their funds to try and save money in a more productive way.
    J_B.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
    • redmalc
    • By redmalc 16th Oct 16, 6:49 AM
    • 1,165 Posts
    • 440 Thanks
    redmalc
    • #7
    • 16th Oct 16, 6:49 AM
    • #7
    • 16th Oct 16, 6:49 AM
    I cannot find a better account for my 20 k at the moment,please advise if you have
    • eskbanker
    • By eskbanker 16th Oct 16, 11:22 AM
    • 3,644 Posts
    • 3,265 Thanks
    eskbanker
    • #8
    • 16th Oct 16, 11:22 AM
    • #8
    • 16th Oct 16, 11:22 AM
    I am currently thinking of transferring cash into PB's, but I will be leaving 20k in my 123 account - the PB's only work out at just above 1.1% I believe, so why transfer from the 123 - unless you fancy your luck I suppose??
    Originally posted by pip895
    The whole premise of PBs is based on luck but it's difficult to have a one-size-fits-all answer to whether they're a good idea or not.

    The theoretical return on a large holding over a long time is 1.25% but most will receive less than that as the figure is skewed by the small number of large prizes, so the median average is probably closer to the figure you quote.

    However, much also depends on tax status and interest earnings, as the PB's tax-free payout makes it more appealing to higher rate taxpayers and especially those who exceed their personal savings allowance. People like this would be (on average) earning an effective gross rate of nearly 2% from PBs, which would be more tempting than 1.5% in a 123, but for those with all savings interest within the PSA then 1.1% in PBs is clearly less appealing than a 1.5% account.
    • bowlhead99
    • By bowlhead99 16th Oct 16, 11:44 AM
    • 5,144 Posts
    • 9,076 Thanks
    bowlhead99
    • #9
    • 16th Oct 16, 11:44 AM
    • #9
    • 16th Oct 16, 11:44 AM
    If our high street banks are to cut rates at the behest of the Governor of the bank of England
    Originally posted by Joe_Bloggs
    The bank of England does not tell the banks they must cut rates offered to savers. The banks choose to, or not to, based on their business models, in response to market conditions. You can see that when the base rate dropped to 0.5% in 2009, Libor did not drop to that level for quite some time and consumer savings rates did not get there for five years.

    then clearly the team at the bank of England have some idea as to where they expect people to move their funds to try and save money in a more productive way.
    They would like you to invest it, or spend it. At a personal level, a large element of savings are for 'a rainy day'. It is the same at the macro-economic level. When the economy is having, or predicted to have, a rainy day, central banks will use monetary policy to encourage people to cease saving so much and instead use the funds in a way that will help the economy.
    • Joe_Bloggs
    • By Joe_Bloggs 16th Oct 16, 1:12 PM
    • 4,360 Posts
    • 1,542 Thanks
    Joe_Bloggs
    Bowlhead, I thank you for your reply. You can't deny that Libor was rigged to suit the bankers. The concept of it just invited manipulation.

    I maintain that central bank policies dictate the path of commercial if failing banks. These banks seem to end up paying billions in fines each year and offsetting billions more for future misconducts. This is a business model with a criminal/law breaking aspect to it.

    Are you saying that banks can't be trusted to invest depositors money better than depositors can do on their own elsewhere. Where do the central banks want people to put their money if not in a bank?

    J_B.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
    • Nationwide8
    • By Nationwide8 16th Oct 16, 1:26 PM
    • 208 Posts
    • 90 Thanks
    Nationwide8
    At the moment I have £20,000 in Santander.When the interest rate goes to 1.5% have worked out will get about 1.3% when add in the cash back covering about half the fee.

    For me I am going to put some ( not sure how muich yet ) in PBs,just one £25 win a month is the same as the interest from Santander on £20,000 and of course there is a chance I could win more.....or less,that's the "risk"

    It's a fine line,if I could find somewhere paying more than 1.3% or Sant cut interest or increase fee again I'd be out of Santander ( have filled other accounts paying more Tesco,etc )
    • Joe_Bloggs
    • By Joe_Bloggs 16th Oct 16, 1:51 PM
    • 4,360 Posts
    • 1,542 Thanks
    Joe_Bloggs
    The nature of premium bonds has been discussed. The statistical 'rate' of return will follow trends in interest paying accounts allegedly.
    There is a MSE Premium bond calculator. If this option is all you can think of then so be it. It is reversible so go for it if you have exhausted all other options
    J_B.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
    • IanManc
    • By IanManc 16th Oct 16, 4:32 PM
    • 226 Posts
    • 343 Thanks
    IanManc
    The nature of premium bonds has been discussed. The statistical 'rate' of return will follow trends in interest paying accounts allegedly.
    There is a MSE Premium bond calculator. If this option is all you can think of then so be it. It is reversible so go for it if you have exhausted all other options
    J_B.
    Originally posted by Joe_Bloggs
    And the notional interest rate used to calculate the premium bond prize fund could well be reduced - again.
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