43 years unclaimed interest. WOW!!!

[Deleted User]

Hi,

I've unearthed an old PO savings book, last entry 1964, it has a balance of one shilling, apart from 2.5 pence, what will it be worth now, with 43 years interest?

Cardew

1 shilling is 5p(not 2.5p)

Using RPI it would have been be worth 68p in 2005 so say 73p now.

Did the PO pay interest on less than £1

Let me guess at 40p!

[Deleted User]

Hi,

oops, , oh well, won't even get a pint out of it. :rotfl: .

Thanks.

Cardew

"Let me guess at 40p!"

In fact as this is a most important financial issue we should reconsider the sum of 40p.

IIRC the PO always rounded down interest to the nearest old penny(1d). 1 shilling being 12d. So until we went decimal, unless the PO paid interest at over 8.5% your 1 shilling would have remained at 1 shilling.

When we went decimal your 5p would have stayed at 5p unless interest rates went above 20%.

So I will revise that 40p estimate to 5p So about one eighth of my original estimate - which is about the accuracy I have experienced with IFAs!!

ctdctd

If someone wants something to research, what would it have turned into if invested in the All Share index?

[Deleted User]

Hi,

interesting, even in 1964 my shilling wouldn't buy me a pint, look, jings, 2/1d a pint.

Chrismaths

My data only goes back to Dec 85, but the total return since then has been 1018%. So that would be 56p since then.

The All Share launched in 1962 (at 100), so in capital only terms, the market is up 3345% since then, about 8.2% pa. Add in about 2.8% pa for dividends, and you get 11% pa, which over 43 years is about 8800%, or £4.44

obsessed_saver

If you haven't touched the account in a few years, the bank would have given your money the to BoE.

Chrismaths

...which you could then reclaim. But we're not talking a row of houses here anyway.

McSaver

I think that you should go and reclaim the shilling plus 43 years interest just to see how much its worth now...

Never Know you might get a £1

robnye

be prepared for the laughter though......... how many times they would have to put the book through the printer to update it....... how books needed to finish the updating :rotfl: