NS&I Income Bonds

polymaff

labp04 said:

bowlhead99 said:

but 1%+ is ten times what many of the high street banks are paying, 

And somewhere around twice the current rate of inflation. Long may it last!

Not true of either the ONS's - or savers' - preferred rate of inflation.

RG2015

polymaff said:

labp04 said:

bowlhead99 said:

but 1%+ is ten times what many of the high street banks are paying, 

And somewhere around twice the current rate of inflation. Long may it last!

Not true of either the ONS's - or savers' - preferred rate of inflation.

ONS May 2020

CPIH - 0.7%
CPI - 0.5%
RPI - 1%

https://www.ons.gov.uk/economy/inflationandpriceindices

polymaff

RG2015 said:

ONS May 2020
CPIH - 0.7%
CPI - 0.5%
RPI - 1%
https://www.ons.gov.uk/economy/inflationandpriceindices

Quite so.  Confirming my post.  Or what?

RG2015

polymaff said:

RG2015 said:

ONS May 2020
CPIH - 0.7%
CPI - 0.5%
RPI - 1%
https://www.ons.gov.uk/economy/inflationandpriceindices

Quite so.  Confirming my post.  Or what?

Absolutely, but I thought it would be helpful to insert some figures and source information to complement your comment.

polymaff

RG2015 said:

polymaff said:

RG2015 said:

ONS May 2020
CPIH - 0.7%
CPI - 0.5%
RPI - 1%
https://www.ons.gov.uk/economy/inflationandpriceindices

Quite so.  Confirming my post.  Or what?

Absolutely, but I thought it would be helpful to insert some figures and source information to complement your comment.

I'd hoped so, RG, but you are not usually so phlegmatic ...

Thought that I'd better makes sure that the sophistry of labp04's post was clearly nailed as such.  To be "around twice the current rate of inflation" would be "around" 1.4% by the ONS-preferred figure or, even a more unlikely 2.0% by our ailing, but faithful, old friend, RPI.  When will we see those rates again?

Plus, of course, those are before tax, which more than just I pay, so at least 1.75% required to help me have my outgoings protected - according to labp04's bizarre view of reality  ...

blue_max_3

colsten said:

You can link the IB account directly to any current account, so that the monthly interest gets paid directly into the current account straight away. You can still transfer to and from other NS&I accounts, such as the DS or PBs.

For me, I only use this for savings and prefer the IB interest goes into the DS. I also prefer the flexibility of adding less than £500 to the DS and transfer to the IB when the account goes above (or I win on the premium bonds!).

colsten

blue_max_3 said:

colsten said:

You can link the IB account directly to any current account, so that the monthly interest gets paid directly into the current account straight away. You can still transfer to and from other NS&I accounts, such as the DS or PBs.

For me, I only use this for savings and prefer the IB interest goes into the DS. I also prefer the flexibility of adding less than £500 to the DS and transfer to the IB when the account goes above (or I win on the premium bonds!).

I simply wanted to clarify that it is an individual choice rather than a given which account your monthly interest gets paid into. As I already said, you can still deposit via your DS if you prefer, regardless of which account your interest gets paid into. Given that you can presently still get up to double the rate of interest in some other instant access accounts, the MSE in me balks at the idea of having money sitting in the DS. Each to their own though.

blue_max_3

colsten said:

I simply wanted to clarify that it is an individual choice rather than a given which account your monthly interest gets paid into. As I already said, you can still deposit via your DS if you prefer, regardless of which account your interest gets paid into. Given that you can presently still get up to double the rate of interest in some other instant access accounts, the MSE in me balks at the idea of having money sitting in the DS. Each to their own though.

I know, but the thrust of this thread (think it was this one) was the fact that money paid into the Income bonds tends to go into a black hole between those dates and can't be accessed. And has to be £500 or more. My way overcomes that.

colsten

blue_max_3 said:

colsten said:

I simply wanted to clarify that it is an individual choice rather than a given which account your monthly interest gets paid into. As I already said, you can still deposit via your DS if you prefer, regardless of which account your interest gets paid into. Given that you can presently still get up to double the rate of interest in some other instant access accounts, the MSE in me balks at the idea of having money sitting in the DS. Each to their own though.

I know, but the thrust of this thread (think it was this one) was the fact that money paid into the Income bonds tends to go into a black hole between those dates and can't be accessed. And has to be £500 or more. My way overcomes that.

OK, I'll try one final time: for deposits, it does not matter where your IB interest gets paid to. 

blue_max_3

colsten said:

OK, I'll try one final time: for deposits, it does not matter where your IB interest gets paid to. 

Yes, that's correct. I just outlined how I did it and why. I appreciate you may have been making a general comment. As I said, this is all savings for me, so having the interest paid into my bank account makes no sense to me. I don't earn any interest on my current account.
I am fortunate to have significant savings, so this allows me to keep it all together. I had it spread out before, but now the rate is table leading, I consolidated. Sounds like it may not stay like that for too much longer though. Probably need to buy a property soon.