NS&I to cut premium bond rate and other accounts

NottinghamKnight

grumiofoundation said:

NottinghamKnight said:

maman said:

whitesmith said:

Just withdraw the balance - they will close the account and add interest to date

Thanks, that's what I'll do. It's just that with my bank I've had to formally request closure of defunct accounts I no longer needed e. g. when fixed term savings or a linked account come to an end. 

Whilst it might appear 'tidier' there's no reason to close old savings accounts. My TSB easy savers left after completing regular savers are still open, TSB won't close without a letter or branch visit so more hassle to close than leave them open for me. 

Good to have a few accounts to switch as well (also this gets the new bank to do the legwork of closing it for you !!) 

But not savings accounts.

grumiofoundation

NottinghamKnight said:

grumiofoundation said:

NottinghamKnight said:

maman said:

whitesmith said:

Just withdraw the balance - they will close the account and add interest to date

Thanks, that's what I'll do. It's just that with my bank I've had to formally request closure of defunct accounts I no longer needed e. g. when fixed term savings or a linked account come to an end. 

Whilst it might appear 'tidier' there's no reason to close old savings accounts. My TSB easy savers left after completing regular savers are still open, TSB won't close without a letter or branch visit so more hassle to close than leave them open for me. 

Good to have a few accounts to switch as well (also this gets the new bank to do the legwork of closing it for you !!) 

But not savings accounts.

Ah true. 

maman

Closed one of my NS&I accounts today. Although it gave a figure available (balance - £500), when I clicked on it, it gave the option of removing the whole lot and closing the account so I chose that.

That leaves a couple of Guaranteed Growth Bonds and some Premium Bonds. I know the Premium Bond odds will be reduced and I suspect the others as well but I need to check. 

It all seems a bit futile but as long as I have somewhere with a higher rate of interest then I'll use that. I've also got 3 Regular Savers which come to an end shortly (maximum allowed £6000pa). It'll be interesting to see what's available next, if anything. 

polymaff

maman said:

That leaves a couple of Guaranteed Growth Bonds and some Premium Bonds. I know the Premium Bond odds will be reduced and I suspect the others as well but I need to check.

GGBs seem to be renewing at 0.36% for three years, 0.51% for five years.

Quite a hit. ...

maman

polymaff said:

maman said:

That leaves a couple of Guaranteed Growth Bonds and some Premium Bonds. I know the Premium Bond odds will be reduced and I suspect the others as well but I need to check.

GGBs seem to be renewing at 0.36% for three years, 0.51% for five years.

Quite a hit. ...

Yes, but I think I'll leave them to the last minute as the current rates are better than the 1.2% I have elsewhere at the moment. 
Not sure about the Premium Bonds. They're a bit like raffle tickets. 🤣

ColdIron

maman said:

polymaff said:

maman said:

That leaves a couple of Guaranteed Growth Bonds and some Premium Bonds. I know the Premium Bond odds will be reduced and I suspect the others as well but I need to check.

GGBs seem to be renewing at 0.36% for three years, 0.51% for five years.

Quite a hit. ...

Yes, but I think I'll leave them to the last minute as the current rates are better than the 1.2% I have elsewhere at the moment.

The published rates appear set to change from 24/11/2020 with 0.55% on the 5 year GGB being the highest
https://forums.moneysavingexpert.com/discussion/comment/77781928/#Comment_77781928

polymaff

maman said:

Yes, but I think I'll leave them to the last minute as the current rates are better than the 1.2% I have elsewhere at the moment. 
Not sure about the Premium Bonds. They're a bit like raffle tickets. 🤣

Well, you wouldn't - maybe you couldn't, anyway. ...

Treat the new Premium Bond rate as 0.9% tax-free and you won't go far wrong.

maman

polymaff said:

maman said:

Yes, but I think I'll leave them to the last minute as the current rates are better than the 1.2% I have elsewhere at the moment. 
Not sure about the Premium Bonds. They're a bit like raffle tickets. 🤣

Well, you wouldn't - maybe you couldn't, anyway. ...

Treat the new Premium Bond rate as 0.9% tax-free and you won't go far wrong.

Thanks. Put like that, 0.9% sounds a really good bet. 😁

polymaff

maman said:

polymaff said:

maman said:

Yes, but I think I'll leave them to the last minute as the current rates are better than the 1.2% I have elsewhere at the moment. 
Not sure about the Premium Bonds. They're a bit like raffle tickets. 🤣

Well, you wouldn't - maybe you couldn't, anyway. ...

Treat the new Premium Bond rate as 0.9% tax-free and you won't go far wrong.

Thanks. Put like that, 0.9% sounds a really good bet. 😁

That 0.9% is not a guess, by the way. It is how the new rate will deliver for 4 to 5-figure holdings - less the fraction of £25 you never win. ... 

Just, don't expect it to last.  Premium Bonds are too high-profile for NS&I to kill them off - as per Income Bonds.

They'll be steadily cut - hoping that nobody notices - I reckon. ...

fly-catchers

Why are people closing their NS&I accounts before the interest has even dropped?