NS&I to cut premium bond rate and other accounts

wiseonesomeofthetime

And so it starts. 1.30% 1 Year Fixed Term Saver - Para-GONE!

eskbanker

wiseonesomeofthetime said:

And so it starts. 1.30% 1 Year Fixed Term Saver - Para-GONE!

Correlation or causation?  Many savings products have been withdrawn in recent times, so the first to happen after the announcement of NS&I's rate drops isn't necessarily the start of anything as such....

SpanishBlue

eskbanker said:

wiseonesomeofthetime said:

And so it starts. 1.30% 1 Year Fixed Term Saver - Para-GONE!

Correlation or causation?  Many savings products have been withdrawn in recent times, so the first to happen after the announcement of NS&I's rate drops isn't necessarily the start of anything as such....

Maybe, maybe not, but I was one of those yesterday afternoon as soon as I read about the NS&I interest drop to immediately open that account.

£50K that arrived from NS&I today is already in there now, and another £35K will be added when that lands in my nominated account tomorrow (You have 5 days to add to your initial investment).

I'm sure many others did the same.

RetSol

wizdoc said:

What are others' experiences in terms of the time taken for income bond withdrawals to hit their bank accounts? According to the NS&I website, withdrawals up to including £50,000 should clear by the next working day, but this doesn't always seem to be the case in my experience. 

I have made a number of sub-50k withdrawals from my IB account recently. I make the withdrawal via the NS&I website first thing in the morning and the money arrives in my Santander current a/c by the middle of the afternoon on the following day. I hope this helps, @wizdoc. 

wiseonesomeofthetime

Looks like some people had/have serious money in that account!

I received £2.11 for last month's interest, so gives an indication of how little I had free to put there.

When my fixed rates start maturing next month, there may be nothing decent to divert them to.

The 1.80% I got last November seems a lifetime away now. Next month's was 1.65%. Even that is daylight away from current, and future, rates.

RetSol

I-LOV-MONEY said:

Presumably there is no need to panic just yet.  You will still get your 1.16% on the Income Bonds until 24 November.  If you move your money now, then by that time, the other account will have also dropped their interest rates.   Wait until 23 November !!!!

I don't quite understand the rush to withdraw 100% from IBs.  In effect, it's a 2-month fixed rate of 1.16% with easy access. 

trickydicky14

Don't know if its been pointed out but Paragon 1.30% is still available via HL active savings

wiseonesomeofthetime

Hmm, allegedly until 30 September 2020!

Michael121

Thrugelmir said:

Sailtheworld said:

Thrugelmir said:

Sailtheworld said:

Thrugelmir said:

Ouch. This is going to cause a downward spiral. 

You make it sound like this is a bad thing - it isn't.

Most charities transfer wealth from rich to poor - NS&I were doing just the opposite.

Other deposit will substantially reduce their rates too. NSI is effectively saying we don't want your money to existing customers. The money has to flow somewhere else. That will be an enormous amount of money looking for a new home in a short space of time. 

The last thing the government want to do is to have to repay £160bn of debt - they very much want the money but just don't need to pay over the odds for it.

There's obviously been a plan hatched in the Treasury.  Long dated Gilts are a cheaper financing option. Let inflation take care of the debt pile. 

What do you mean? 

SpanishBlue

RetSol said:

I-LOV-MONEY said:

Presumably there is no need to panic just yet.  You will still get your 1.16% on the Income Bonds until 24 November.  If you move your money now, then by that time, the other account will have also dropped their interest rates.   Wait until 23 November !!!!

I don't quite understand the rush to withdraw 100% from IBs.  In effect, it's a 2-month fixed rate of 1.16% with easy access. 

In 2 months time I expect all rates will be very close to zero, but open now a 1, 2 or even 3 year fixed account and at least get somewhere between 1.3% and 1.4%.