New Rates at Nationwide

apt

Nationwide - our caring mutual - has also removed all interest from the Flexaccount at the same time as jacking up the overdraft interest rate to 17.9%. E-Saver plus has not been lowered, but it's still not a good account. The YBS Internet Saver is much better. One crumb of comfort for savers in the statement:
'A new one year Tracker Bond issue is also being launched from Monday 2 February 2009, paying between 2.05% and 2.30% above Base Rate, depending on the account balance.'

edda

Where is the link on the Nationwide website for this?

I was looking for it yesterday and they always seem to bury it away somewhere (not in the site map).

Milarky

edda wrote: »

Where is the link on the Nationwide website for this?

I was looking for it yesterday and they always seem to bury it away somewhere (not in the site map).

Here http://nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=1337

NPowerUser

rb10 wrote: »

As Martin explains in his article at http://www.moneysavingexpert.com/savings/premium-bonds#most, you would actually need above average luck to get 1.8% return. Most people will get less than 1.8%, because of the way they allocate prizes.

Also bear in mind that unless you are able to get the premium bonds before the end of January, they won't be entered into a draw until 1st April, by which time the rate will probably have gone down.

And, even if you were unusually lucky and managed to get 1.8% on Premium Bonds, you can still easily better this in many savings accounts (just move it away from the 1% one at Nationwide!).

I just don't have the time to chase rates on the internet. The job I do generates a lot of cash and I have always preferred walking into a bank or building society in my local high street and saving money that way. I suppose I have about £800 spare to save each month.

I accept there are better savings rates elsewhere and I would like to save for 2 years and then move house. With savings rates between 0.1% and say 3% if your lucky, I just think Premium Bonds don't look too bad a bet, even if they do slash rates in April and introduce a £25 prize.

Returns are tax free as well and very safe. Tying up some spare cash in Premium Bonds for 2 years until interest rates rise is suddenly looking more appealing. I also think buying in say blocks of £400, twice a month, is better than say having £9,000 in one block of consecutive numbers.

Time will tell, I may have earned £50 or £100 more in interest by chasing the best rates available elsewhere but the thought of an extra 20K saved up in Premium Bonds in 2 years time and a few prize wins along the way just seems a bit more exciting. With inflation set to fall to almost zero it just doesn't feel like too bad a gamble. I will let you know how I get on over the next 2 years.

Robert_Sterling_3

NPowerUser wrote: »

1% interest payable on my instant cash isa is a very poor return.
Why should I try and save 9K with them, when I will be earning just £90 interest?

All of a sudden the 1.8% return on Premium Bonds (with average luck) looks quite good.

The low interest rate is intended to encourage savers to spend spend spend to help the economy.

Dave101t

im investing in premium bonds at present, with the isa at under 2% and returns on bonds running at 3% (a 50 pound prize every 2-3 months) its the best place for someone like me, who is just starting to save money for the 1st time.
as soon as isa rates go up, i'll start to invest again in that, as i used to split my money 50/50 between these options.
think lucky and you may be lucky! (won 2 prizes in dec - 50 pound each)

Primrose

Robert_Sterling: Gordon Brown and Alister Darling are already doing a more than excellent job of spending money on my behalf, (how many £trillions is it now - I've lost count ) so I don't think they need any help from me in the process.

Primrose

Robert_Sterling, Gordon Brown and Alister Darling are already doing a more than excellent job of spending money on my behalf, (how many £trillions is it now ???) so I don't think they need any help from me in the process

pattycake

Dave101t wrote: »

im investing in premium bonds at present, with the isa at under 2% and returns on bonds running at 3% (a 50 pound prize every 2-3 months) its the best place for someone like me, who is just starting to save money for the 1st time.
as soon as isa rates go up, i'll start to invest again in that, as i used to split my money 50/50 between these options.
think lucky and you may be lucky! (won 2 prizes in dec - 50 pound each)

How much have you got in Premium Bonds? I have £11K and have only won a paltry £50 in the last year! May be it is my turn for a big win in February. Fingers crossed:rotfl:

NPowerUser

pattycake wrote: »

How much have you got in Premium Bonds? I have £11K and have only won a paltry £50 in the last year! May be it is my turn for a big win in February. Fingers crossed:rotfl:

Are you holdings in large blocks of say 1k-2K pattycake?

Most of my wins in the past have come from blocks of £300-£400

Personally, I would rather have 10 x £300 blocks than 2 x £1500 blocks.

Better luck this year.