NS&I to cut premium bond rate and other accounts

maman

Apologies in advance for  any repetition caused by not reading the 300+ posts on this thread. but I have a few questions.

I have savings in NS&! in various forms. I want to keep it easy access as we have plans for major house renovations during the coming year.

I have opened a Coventry variable account at 1.2%. I realise this could change any time too.
As yet, I haven't transferred anything out of NS &I. 

Is there any urgency to do this? Should I transfer in one hit? Does it matter? Is there any advantage in leaving any money in the NS&I accounts (seems £500 would be left in there unless I closed them). 

TIA

wiseonesomeofthetime

There is no urgency really as the rates will remain until the November date on which they reduce.

I assume you have the Coventry Double Access Saver at 1.2% (now closed to new applications)

While that rate may reduce in the next month, the 0.05% difference would be minimal over the four weeks.

If you are likely to need part of the current NS&I funds in the next few weeks, I would just leave them when they are till the last minute, rather than risk burning one of the two interest-free withdrawal lives.

polymaff

I wonder for how long that briefly-available Coventry account will be paying 1.2%?

Another aspect with regards to an Income Bond is its use as an enabler of the Halifax Reward.  I've opened a couple of NS&I Direct Savers that'll replace our to-be-closed Income Bonds in this role.

maman

wiseonesomeofthetime said:

There is no urgency really as the rates will remain until the November date on which they reduce.

I assume you have the Coventry Double Access Saver at 1.2% (now closed to new applications)

While that rate may reduce in the next month, the 0.05% difference would be minimal over the four weeks.

If you are likely to need part of the current NS&I funds in the next few weeks, I would just leave them when they are till the last minute, rather than risk burning one of the two interest-free withdrawal lives.

Thanks for that. I had thought about the two withdrawals, so a good reason for leaving it to later rather than sooner. 😊

maman

polymaff said:

I wonder for how long that briefly-available Coventry account will be paying 1.2%?

Another aspect with regards to an Income Bond is its use as an enabler of the Halifax Reward.  I've opened a couple of NS&I Direct Savers that'll replace our to-be-closed Income Bonds in this role.

Of course. I'm sure you're right that the Coventry rate is unlikely to last long. 

Apologies for ignorance but what do you mean by an enabler for the Halifax? 🤔

NottinghamKnight

maman said:

polymaff said:

I wonder for how long that briefly-available Coventry account will be paying 1.2%?

Another aspect with regards to an Income Bond is its use as an enabler of the Halifax Reward.  I've opened a couple of NS&I Direct Savers that'll replace our to-be-closed Income Bonds in this role.

Of course. I'm sure you're right that the Coventry rate is unlikely to last long. 

Apologies for ignorance but what do you mean by an enabler for the Halifax? 🤔

They accept debit card payments so a monthly £500 payment, which meets the minimum for income bonds, is sufficient to get the £5 reward from the Halifax current account. 

maman

Every day's a school day. 😁 Thanks. 

dosh37

d63 said:

ns&i really really sorry . . .
https://www.thisismoney.co.uk/money/saving/article-8826131/NS-boss-really-really-sorry-meltdown.html

Clearly the man in charge has not read any of the NS&I trustpilot reviews over the last few months:-

https://uk.trustpilot.com/review/nsandi.com

coachman12

dosh37 said:

d63 said:

ns&i really really sorry . . .
https://www.thisismoney.co.uk/money/saving/article-8826131/NS-boss-really-really-sorry-meltdown.html

Clearly the man in charge has not read any of the NS&I trustpilot reviews over the last few months:-

https://uk.trustpilot.com/review/nsandi.com

Hands up everyone who really thinks TrustPilot is anything but a sham which is manipulated by both companies and individuals.

polymaff

NottinghamKnight said:

maman said:

polymaff said:

I wonder for how long that briefly-available Coventry account will be paying 1.2%?

Another aspect with regards to an Income Bond is its use as an enabler of the Halifax Reward.  I've opened a couple of NS&I Direct Savers that'll replace our to-be-closed Income Bonds in this role.

Of course. I'm sure you're right that the Coventry rate is unlikely to last long. 

Apologies for ignorance but what do you mean by an enabler for the Halifax? 🤔

They [NS&I Income Bonds and Direct Savers] accept debit card payments so a monthly £500 payment, which meets the minimum for income bonds, is sufficient to get the £5 reward from the Halifax current account. 

 ... and with falling interest rates, that £6.25 gross, per month, per Halifax Reward account would require permanent multiples of £6,250 at 1.2% to match - and 25% more than that amount at the current rate being offered for that Coventry account.