What's it worth?

Bluesea_3

Hi all. I have a very basic, even perhaps naive, question about an old investment. Maybe somebody can help throw some light on it.

I found a childhood post office savings book (mine) the other day, with "five shillings" invested in 1955. I wrote in to the NS&I as requested and have a reply that says the current balance "is under £1.00".

Does this mean that the original investment has lain dormant and not accruing any interest at all? Surely one could expect that there would be balance somewhat higher than this in 55 years?

Rollinghome

Had your 5/- kept up with inflation it would be worth £5.04 today. But if the interest rate didn't match inflation you'd get far less and in most accounts the interest would still be subject to tax. So a warning about the dangers of inflation. Lucky it was only five bob.

Bluesea_3

Thanks Rollinghome. It has occured to me since posting, that old savings accounts might be just that? I.e. just like a piggy bank with no interest?

Rollinghome

Leaving five bob in a dormant account, you must have had money to burn.

Loughton_Monkey

As I posted on another thread. I, too, have such an account, instructed by my parents in my name around 1955.

My 'cash flow issues' caused by drunken days at University caused me to withdraw the lot, but they told me to leave 1 shilling in or the account would have to be closed. Optimist that I am, I kept it open for future deposits.

I expect (but cannot confirm) the guy would have told me that no interest is payable under £1.

I have a very firm strategy (having rejected the thought of substantial legal action about mis-selling). And that is to wait until the Government has finished it's "Quantitative Easing" (printing money). This, in turn, will cause rampant inflation.

Once the smallest British Coin is 10p (equivalent of 2 shillings), then I've got them!

They will have no alternative but to pay me 10p, and therefore double my investment. 100% profit in the making! Proves I'm not as stupid as people think I am!

bendix

Loughton_Monkey wrote: »

Proves I'm not as stupid as people think I am!

Oh . . i don't know . . .

Loughton_Monkey

Ha!

If you're so clever, Bendix, give me a better investment strategy for my shilling!

I want a low charge product. Medium Risk. Prepared to leave it up to 5 years. IFA advice considered. I'm a taxpayer. Prepared to take proceeds in instalments.

Rollinghome

Goes to show a good education is never wasted.

How about a pallet-load of first-class stamps? How much were they when they stopped printing the price on them? Was it about 20p or so and 41p now? If they privatise the Royal Mail you could be quids in.

Loughton_Monkey

Rollinghome wrote: »

Goes to show a good education is never wasted.

How about a pallet-load of first-class stamps? How much were they when they stopped printing the price on them? Was it about 20p or so and 41p now? If they privatise the Royal Mail you could be quids in.

Nice thinking. Too late now.

Better still, if you found a penny black in your grandfather's stamp collection, try bunging that on your ISA application. Santander would be charged 82 pence excess postage, that they'd refuse to pay.

So the muppets in Royal Mail would send it back to you.

Priceless!

GavB79

I have a load of red first class stamps bought at around 30p when I used to sell on ebay. Then they changed to gold coloured or whatever. So the red ones are still fine to use as a full first class stamp?!

Bluesea_3

Many thanks all. So the moral of the story is this;
Don't give your last five bob to the government for 55 years, take up philately and pray for rampant inflation. :rotfl:

I'm just so glad that Gordon Brown nicked most of my non existant pension, or I'd have to worry about where to put that too.