Newcastle drop rate again!

jimjames

teepee83 wrote: »

Indeed yes I agree and mortgage rates are very low. It is just a frustrating environment for all of us savers, unless you are brave enough to stick everything in S&S.

In case you're not aware you don't need to "stick everything in s&s", in fact that probably wouldn't be good investing. No reason why you can't have a portion in cash and a portion in s&s, down to each person to decide what mix works for them.

System

jimjames wrote: »

In case you're not aware you don't need to "stick everything in s&s", in fact that probably wouldn't be good investing. No reason why you can't have a portion in cash and a portion in s&s, down to each person to decide what mix works for them.

Absolutely yes, but the cash element of your portfolio won't make you any money. Although of course it is important to hold cash to whatever degree is appropriate for you, especially if you are planning to use the money soon. Or use to rebalance a portfolio etc.. However if saving long term the stock market is the place to be

badger09

I haven't received my letter, but can't say I'm surprised.

I reduced the monthly SO to both from max to min, in response to last rate reduction. Will keep them going though, 2% is better than nothing - and yes I have filled all the decent rate accounts

Trying to pluck up courage to transfer over £50k in just matured 4.2% 3 year cash ISA (those were the days:o) into my S&S ISA. I think I'll just split it between the HSBC Loyalty & Santander 123 Direct ISAs, both @ 1.5%, then transfer into S&S as I see fit :cool:

First world problems

PS apologies for taking thread off piste.

chaotic_j

Hi,

Read about it on here first now got the letter; have maxed out all other high interest current accounts so still the best option for me right now, I believe.

Sent a message to customer services asking if due to ISA allowance increase from 2014/15 £15,000 to 2015/16 £15,240 maximum pay in per month is increased from £1,250 to £1,270 they say 'Yes'.

Just paid in first month on 06/04/15, set up SO to pay out 11 more times until 05/03/16 to max allowance.

My query is.. if the maximum balance is now £30,000 what happens if you reach the max? I have interest paid back into the account - this will take me over the max?

It says they have introduced this 'Special Condition' however they don't include a copy of the conditions for the account? Bit strange really?

Anyone shed some light on this please?

Thanks in advance
chaotic_j

lalman

I have around 10k emergency fund in there that I will be transferring out.


If I was to close the account what identification do I need to take and do you still need to have that mortgage meeting that I remember reading about when I first opened the account.


I think rates are just going to get lower and lower...

Herbalus

lalman wrote: »

If I was to close the account what identification do I need to take and do you still need to have that mortgage meeting that I remember reading about when I first opened the account.

I simply clicked on withdrawal all funds online, and a message told me that if I continued the account would be closed as it would have a £0 balance. I imagine the same will happen if you transfer all to another provider.

TakeCareOfThePennies_2

teepee83 wrote: »

Although of course it is important to hold cash to whatever degree is appropriate for you, especially if you are planning to use the money soon. Or use to rebalance a portfolio etc..

Holding cash has nothing to do with using money soon or rebalancing a portfolio !

You must always retain a degree of cash suitable for your circumstances (the figure generally bounded about for the average Joe is 6 to 12 months salary). The consideration of whether or not it is earning any interest is totally and completely irrelevant. Cash is a position as they say, ignore it at your peril.

Look at cash like the foundations of your house ... boring but an absolute necessity. And indeed, much like the foundations of your house, cash is there primarily for your own safety rather than increasing the value of your house.

Now, if you're planning to need money soon, rebalance a portfolio or whatever, then you will need more cash, i.e. be overweight cash. But that should never be the basis of maintaining some cash, you must always maintain some cash.

Yes its not a nice environment to hold cash at the moment, but that's not an excuse for cutting corners on your cash holdings. You won't get the stability and liquidity of cash in any other way, not even in the most boring of bonds.

garfield33

I was wondering the same as chaotic_j - if an interest payment takes the balance over the £30k - what happens? I've had a look on the NBS website haven't found the answer (doesn't mean it's not there, I'm not great at finding these things).

lalman

Herbalus wrote: »

I simply clicked on withdrawal all funds online, and a message told me that if I continued the account would be closed as it would have a £0 balance. I imagine the same will happen if you transfer all to another provider.

I have a pass book. Not really 'down' with you kids yet.

Herbalus

lalman wrote: »

I have a pass book. Not really 'down' with you kids yet.

I'm surprised that you got a passbook with this account. Are you sure it's the Big Home Saver you've got?