NS&I Investment Bond

Malthusian

The only incentive you need to save is being able to buy a new boiler or car without having to pay extortionate amounts to payday lenders or car finance companies.

If you are capable of valuing future utility you will save, if you aren't you will splurge. The Government has nothing to do with it.

NS&I is a vote-buying slush fund for the incumbent party, nothing more.

apt

jimjames wrote: »

It's low if you're determined to look at it that way. I agree it's pointless but that's because I can already get a lot more than 2% on £3000. Tesco offer 3% on that amount, TSB currently pay 5% as do Nationwide. Cast your net wider and you may be find something of use.

What's the point of quoting 5% for TSB when the rate will have dropped to 3% (on a measly £1,500) by the time this product is available? Plus the Nationwide rate is for one year only and it and Tesco are likely to follow Santander, Lloyds and TSB and drop their rates. Unfortunately, the days of easily earning 3%-5% interest on a reasonable amount of money in current accounts are coming to an end.

jimjames

apt wrote: »

What's the point of quoting 5% for TSB when the rate will have dropped to 3% (on a measly £1,500) by the time this product is available? Plus the Nationwide rate is for one year only and it and Tesco are likely to follow Santander, Lloyds and TSB and drop their rates. Unfortunately, the days of easily earning 3%-5% interest on a reasonable amount of money in current accounts are coming to an end.

TSB rate has been available for 3 years. Nationwide is 5% for a year as well as a regular saver for £6000. By all means base your decision on not taking up an account on the basis that it may change in future. In the meantime you can get over 100% more interest with Tesco than you get on the NSI bond mentioned yesterday. All I can see is excuses why not to bother getting the best rates.

polymaff

jimjames wrote: »

In the meantime you can get over 100% more interest with Tesco than you get on the NSI bond mentioned yesterday.

Please elaborate, Jim.

jimjames

polymaff wrote: »

Please elaborate, Jim.

Not complicated, Tesco pays 3% on £6k

PeacefulWaters

jimjames wrote: »

Not complicated, Tesco pays 3% on £6k

Ah, we're into monthly saver ways of doubling interest on similar rates!

Like it!

bowlhead99

PeacefulWaters wrote: »

Ah, we're into monthly saver ways of doubling interest on similar rates!

Like it!

Ignoring regular savers (because if you have the money on day one you don't want to wait a long time to get it earning). It is just the fact that Tesco gives you a home for £6k full stop (two current accounts allowed per person, £3k each) while the NS&I proposal gives you lower rate on a smaller amount of money.

But as Tesco themselves say- every little.helps.

polymaff

polymaff wrote: »

Please elaborate, Jim.

jimjames wrote: »

Not complicated, Tesco pays 3% on £6k

Ah, and in the same vein, HSBC Instant Access pays 0.05% on £750k - "over 100% more interest" than Tesco

Well below your usual standards, Jim.

metrobus

Let's get back to this bond please there are enough regular saver threads.

So £3000 @ 2.2% for a 3 year bond

We can already get 1.5% for a 3 year bond.

So .7% extra or £21 per year

So 40p a week extra.

And we had some journalist on radio 5 last night saying this new bond is "really exciting" it's a pathetic headline gimmick aimed at people who do not realise it only means 40p a week or put it another way half a packet of crisps,yes really exciting.

polymaff

metrobus wrote: »

Let's get back to this bond please there are enough regular saver threads.

So £3000 @ 2.2% for a 3 year bond

We can already get 1.5% for a 3 year bond.

So .7% extra or £21 per year

So 40p a week extra.

And we had some journalist on radio 5 last night saying this new bond is "really exciting" it's a pathetic headline gimmick aimed at people who do not realise it only means 40p a week or put it another way half a packet of crisps,yes really exciting.

Let's not! Its interest rate is not even defined yet - so your figures are pure speculation.