NS&I to cut premium bond rate and other accounts

kinger101

thegentleway said:

kinger101 said:

thegentleway said:

nbrewitt said:

Sailtheworld said:

It's about time. Not sure why the taxpayer was expected to be providing market leading interest rates to the already wealthy.

Irresponsible comment, not all NS&I savers would class themselves as wealthy by any means 

Sorry but I think you are grossly underestimating what is means to be weathly by world standards. Please note that

Nearly Half the World Lives on Less than $5.50 a Day

This value is adjusted to reflects standards in upper-middle-income countries. So yeah, if you are an NS&I saver then you are very wealthy.
Check out: https://howrichami.givingwhatwecan.org/how-rich-am-i if you want to find out how rich you are compared to the rest of the world.

Erm.......
(1) you can have £1 in an NS&I saver account.  

(2) median household income is about USD 10,000.  Hard to square that with USD 5.50 a day
https://news.gallup.com/poll/166211/worldwide-median-household-income-000.aspx

(3) income is relative to where you live.  

(1) 39% of the population don’t even have a bank account let alone a savings account.
(2) you’re confusing individuals and households.

(3) that’s why the figure I posted is adjusted from $3.20

(1) That doesn't mean having an NS&I account makes you wealthy.
(2) I'm not. I clearly stated medium household income.   I know that's not per person.  
(3) I don't care how you've adjusted it.  You're clearly missing something obvious if you think someone living in the UK is wealthy if they live on the equivalent $5.50 or $3.20 a day.   

RetSol

SpanishBlue said:

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%.

I have gone for a couple of 1-year fixed rate accounts via HL Active Savings but I am keeping short-term cash in IBs for the time being.  Will plonk short-term cash in PBs idc. I also have a Tesco ISA paying a decent rate until next Spring and propose to max out on that. 

ratechaser

Oh well, my kids had a good run. 

Even so, may well leave their ISAs there at 1.5%, only 1-3 years until it's on their hands.

And if this does trigger an influx into long dates gilts as per Thrugelmir's comment, won't do my pension any harm...

Sailtheworld

coachman12 said:

The NS&I decision has flabbergasted me and I agree with the poster who suggested that the huge influx of savings into NS&I followed so soon by a huge loss of all that money will cause unnecessary trouble for the Govt.

They can borrow the money cheaper elsewhere. That's on the list of nice troubles to have.

Plus it should reduce the sacks of thank you notes they have to deal with. NS&I savers have always been very vocal about their gratitude to the taxpayer for the provision of market leading savings rates. Nice people.

phillw

Sailtheworld said
NS&I savers have always been very vocal about their gratitude to the taxpayer for the provision of market leading savings rates. Nice people.

Always? I thought ns&i being market leading was a very recent thing, due to the market evaporating?

whitesmith

The gvt can borrow (via gilts) at the following rates:
5 yr             -0.074%
10 yr            0.205%
15 yr            0.434%

NS&I instant access at 0.15% is beginning to look pretty good...

Deru

Sounds like everyone's pulling out of Income Bonds.   Anyone sticking with their Premium Bonds?  1% chance of winning something still sounds reasonable.  Invest more to further increase odds?  What do you guys think?  

RetSol

Deru said:

Sounds like everyone's pulling out of Income Bonds.   Anyone sticking with their Premium Bonds?  1% chance of winning something still sounds reasonable.  Invest more to further increase odds?  What do you guys think?  

Martin promises to update the MSE advice on PBs at the beginning of December.   He's gonna do the maths for us.  My gut feeling is that, barring a miracle, if you have a significant sum available, PBs at 1% p.a.will shortly be the only game in town for short-term deposits. 

wiseonesomeofthetime

That 1% is not a guaranteed rate though.

Personally, I have no plans to cash in my PBs.

coachman12

Sailtheworld said:

coachman12 said:

The NS&I decision has flabbergasted me and I agree with the poster who suggested that the huge influx of savings into NS&I followed so soon by a huge loss of all that money will cause unnecessary trouble for the Govt.

They can borrow the money cheaper elsewhere. That's on the list of nice troubles to have.

Plus it should reduce the sacks of thank you notes they have to deal with. NS&I savers have always been very vocal about their gratitude to the taxpayer for the provision of market leading savings rates. Nice people.

It is fairly ridiculous to raise the idea of NS&I having to deal with sacks of thank you notes, so I won't bother to comment.
But on the issue of the Govt inviting trouble, I don't think that you understand that, no matter what rate the Govt can borrow at, NS&I still had the greatest amount of our money they have had for over 14 years(to use as they wish) ; and throwing it all away in one go is bound to cause trouble for them, whether short-term or longer. And you also fail to see the political trouble that the National Savings Bank being seen to let down savers in their time of need will make the Govt very unpopular with all the savers who feel extremely let down ( and 30 million NS&I customers represent a lot of votes in the next election). There's nothing "nice" ( to use your word) either for savers or the Government.