Interest rate rise?

System

westernpromise wrote: »

Wow, so that's £4 a year per £1000.

Don't spend it all at once.

As I said, central banks are no longer artificially depressing yields, so rates have now started to climb. It is the direction of travel that is important, and it is UP, not DOWN.
Income from the banks I have mentioned has increased by about 30% in just a few months. That is a big movement over a short period of time.

lisyloo

Wow, so that's £4 a year per £1000.

But if you have 200 of those £ks then that is £800 per annum which is worth having and that's without/before any rate increases.

chucknorris

lisyloo wrote: »

But if you have 200 of those £ks then that is £800 per annum which is worth having and that's without/before any rate increases.

Only if you ignore the differential, the ftse 100 is currently yielding about 4.1% PA, and that is ignoring its far better tax treatment (of dividend income).

System

chucknorris wrote: »

Only if you ignore the differential, the ftse 100 is currently yielding about 4.1% PA, and that is ignoring its far better tax treatment (of dividend income).

And ignore the fact that one's capital is at risk in the FTSE 100. I'm sure BT and many other shareholders now wished they had just put the money in the bank at 1.75% instead.

chucknorris

lisyloo wrote: »

But if you have 200 of those £ks then that is £800 per annum which is worth having and that's without/before any rate increases.

I am really astonished that Thrug thanked this post, the amount is absolutely irrelevant, it doesn't change the yield, wonders never cease! I really thought that he would have had a lot more sense than that.

chucknorris

Ozymandias73 wrote: »

And ignore the fact that one's capital is at risk in the FTSE 100. I'm sure BT and many other shareholders now wished they had just put the money in the bank at 1.75% instead.

You are talking about single company shares (a completely different scenario), I have no such investments, I consider them far too risky.

But back to the point that you tried (but failed) to make, I'm not ignoring the risk, I'm embracing it (within a diversified investment portfolio), and the consequential rewards.

lisyloo

chucknorris wrote: »

Only if you ignore the differential, the ftse 100 is currently yielding about 4.1% PA, and that is ignoring its far better tax treatment (of dividend income).

Im sure youd agree that investments are not an option for everyone.

For example I will shortly be looking after the affairs of a 90 year old and I don;t beleive that;s an option open to me.

chucknorris

lisyloo wrote: »

Im sure youd agree that investments are not an option for everyone.

For example I will shortly be looking after the affairs of a 90 year old and I don;t beleive that;s an option open to me.

Absolutely, I have already said that on this thread. I was merely responding to his message to me.

lisyloo

chucknorris wrote: »

I am really astonished that Thrug thanked this post, the amount is absolutely irrelevant, it doesn't change the yield, wonders never cease! I really thought that he would have had a lot more sense than that.

My point was the yield increase is significant and that’s without interest raise rises.
It’s poor and has shortfall guarantee but that’s irrelevant to people who are unable to consider other options.

chucknorris

lisyloo wrote: »

My point was the yield increase is significant and that’s without interest raise rises.
It’s poor and has shortfall guarantee but that’s irrelevant to people who are unable to consider other options.

I don't think that you read my post correctly, I was responding to someone who was pointing out the additional risk of single company shares, which I do not invest in, because of the additional risk.