NS&I to cut premium bond rate and other accounts

eskbanker

grumiofoundation said:

MSE article on same subject, Im sure a thread will appear once this on has hundreds of posts!
https://www.moneysavingexpert.com/news/2020/09/premium-bond-prize-rate-to-be-slashed-to-1-/

I've sometimes been critical of the emotive tabloidy language used in such articles, but an Income Bonds rate reduction from 1.16% to 0.01% is 'slashing' in anyone's book, even if the PB change isn't so dramatic!

In_for_a_pound

Typical. Just initiated the transfer of my son's JISA in the last few days from Santander to NS&I and the rate drops.

Prism

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 

Maybe not, but there is little reason that the government should be borrowing money from those who have it to spare at a higher rate than they can get from the general market. 

Alter_ego

Just withdrawn income bond down to minimum, just in case their website becomes difficult to access.

ischris85

Was going to move my savings from Marcus to my NS&I IB account. I'll keep them where they are.

polymaff

grumiofoundation said:

Thanks for that

MSE article on same subject, Im sure a thread will appear once this on has hundreds of posts!
https://www.moneysavingexpert.com/news/2020/09/premium-bond-prize-rate-to-be-slashed-to-1-/

The MSE article includes an error:

"one-year Guaranteed Income Bonds are being slashed from 1.06% AER to 0.6% AER.

should read:

"one-year Guaranteed Income Bonds are being slashed from 1.06% AER to 0.06% AER.

Just this once, MSE's use of the term "slashed" is not an over-statement. ...

gwapenut

I wouldn't mind the over-use of the word "slashed" by the financial press to describe cuts of 0.25% if they didn't then go on to describe increases of 1% as "nudges".

Mortgage rates are frequently "hiked" by 0.1% and "trimmed" by 0.5%.

thegentleway

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.

Black_Cat2

Oh crumbs, here we go again! Time to look for a better deal 🐯

Tragen

thegentleway said:

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

How many of those pay income tax?