MSE News: How to beat inflation - earn 7.9% on your savings

apt

I don't think that is comparable. If you sign up for a variable rate savings account the rate may change, but you know what rate you are getting before the change and you can move your money if you do not like the new rate. With the Index linked savings certificates you will only know the rate you can realise at least 12 months after paying in your money. So the headline is misleading. That said it is still a very good product, and a no-brainer for higher-rate taxpayers with spare cash.

sabretoothtigger

Bank of England united in keeping interest rates at record low
Bank of England's rate-setters voted unanimously to keep the UK base interest rate at a record low even though they increasingly believe inflation will not be back below the 2% target this year.

http://www.citywire.co.uk/partners/redirector.aspx?contentid=400649&deliverytargetcode=Personal__News__Markets_companies_and_funds&re=9456&ea=247039

JamesU

artha wrote: »

Has anyone tried to contact anyone on the main site to raise the issues aired on the forums?

It is a real pity that MSE cannot get their act together on ILCs. In places on the site ILCs are now explained a little better than a month or so ago, but it is remarkable just how many people are mislead and confused by the way these are being described. And a lot of contributors including those on this thread are constantly reiterating the same advice because of this.

Yes, MSE were aware of the issues following this general thread:
https://forums.moneysavingexpert.com/discussion/2436929

MSE replied in the following post on the thread:
http://forums.moneysavingexpert.com/showpost.php?p=32349653&postcount=6

And the post office were previously in touch trying to explain the problems MSE are causing with this confusion:
http://forums.moneysavingexpert.com/showpost.php?p=31106525&postcount=7
http://forums.moneysavingexpert.com/showpost.php?p=31108733&postcount=80


It is those people that do not understand the product in the first place that are being confused by the misleading info, and it is somewhat counter-intuitive for MSE to hype the journalism in this manner given how good and balanced the website is normally.

JamesU

chardir

@sabretoothtigger: Don't get me wrong - I think NS&I's index-linked savings are a good option. It's just that MSE's reporting of them is totally misleading. 7.9% is plain wrong.

dunstonh

chardir wrote: »

@sabretoothtigger: Don't get me wrong - I think NS&I's index-linked savings are a good option. It's just that MSE's reporting of them is totally misleading. 7.9% is plain wrong.

I totally agree. NS&I ILCs are great and everyone should consider them.

Remember most posters are not experienced investors/savers and look at the interest rate to compare. We have seen this on other threads/articles where people speed read and only see what they want to see (like the pension one that uses Aviva (still says NU) as an example despite the fact the product was withdrawn over 2 years ago. People post saying its the pension MSE recommends but its not. Its an example only).

Its fair enough that there has to be a bit of dumbing down in the articles. However, that doesnt mean you dumb it down to the level of misleading people.

bendix

I agree too. A sad day for MSE. Misleading, trite and downright dishonest.

Sceptic001

I am in full agreement with all the above critics.

ILSCs are a great product, but why MSE persists in headlining a fictional interest rate (now compounded by quoting a net rate for basic rate taxpayers) is a complete mystery to me.

leed747800

I've looked at the NS&I site and the linked interest is paid over the total period on the basis of the difference between the start and finish index, therefore no change = no interest

Paul_Herring

artha wrote: »

Has anyone tried to contact anyone on the main site to raise the issues aired on the forums?

It would appear there's little point. They've ignored previous attempts at telling them they're misrepresenting rates, and yet they still do it.

Is there perhaps a "free to use, free of ads, uk consumer revenge" site we could post about it on?

Jonbvn

Paul_Herring wrote: »

It would appear there's little point.
Is there perhaps a "free to use, free of ads, uk consumer revenge" site we could post about it on?

Nope! Can't think of one:p