NS&I to cut premium bond rate and other accounts

Stubod

..oh no!! it's not long since I opened them (transferred from Santander when they went South)....a real race to the bottom...another search begins

eskbanker

jelv said:

Has anyone seen any indications of what is likely to happen to the £85,000 FSCS limit after January 1st? Might have to bear this in mind when deciding where to put my money when I take it all out of NS&I Income Bonds.

A straight bat played at https://www.moneyadviceservice.org.uk/en/articles/brexit-banking-insurance-finance#deposit-protection

Will the FSCS deposit protection limit of £85,000 be affected by UK leaving the EU with a withdrawal agreement?

There are no plans to currently revise the FSCS deposit protection limit.

talexuser

I think a whole lot more people will be under the £1000 savings interest allowance now.

thegentleway

Mee 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.

I wish I was wealthy!

You are! You can see by how much on https://howrichami.givingwhatwecan.org/how-rich-am-i

Futuristic

Don't know why people are mad. 

I just moved from Marcus as my bonus rate ended but back we go there again, doubt it'll last long though. I assume others will follow soon as this is a big sign on what's to come. 

Zanderman

thegentleway said:

annabanana82 said:

thegentleway said:

annabanana82 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.

I'm not sure of the relevance of world wealthy in this context. According to the link only 16% of the world is wealthier than me, but I can hardly up sticks and move somewhere poor to live like a Queen.
It also says I can give £15000 away a year and still be richer than many, and the £15k is more than I'd have left for myself!! It also neglects the fact that  I couldn't bring up my family on what I had left living in the UK

Hi annabanan82,
The relevance is that nbrewitt wrote “not all NS&I savers would class themselves as wealthy by any means”
Sorry but the calculator is either playing up or you’ve made an error in the numbers you’ve posted. The giving what you can pledge is only 10% of income so if it’s suggested you donate £15k then than means you’ve entered you earn £150k, which easily puts you in the top 1% earners world-wide (not 16% or even 1.6% assuming you missed a decimal point).

I don’t know what you earn so difficult to come on whether you’d be able to bring up your family but for context Toby Ord brings up his family on income of £18k per year (he donates what he earns above £18k).
Thanks for commenting and hope you found the calculator helpful.

Just checked again, it now says to give 10% of my income away which is nowhere near £15k.
But no, I don't find it a particularly helpful tool, I think it's a tool to try and make people feel guilty about having money.

I'm really sorry to hear you didn't find it helpful. It's really not designed to make people feel guilty at all. I really like it because it makes me feel lucky; I naively thought it would have a similar positive effect in others. Some of my friends complain about the 1% so it's a bit of an eye opener for some of them to realise they are in fact in the 1%!
Do you know how I could approach the topic without making people feel guilty? It's really not my intention. People often think they or somebody they know are not wealthy by any means. I find the calculator really useful to illustrate but I don't want to make them feel guilty. Thanks for your help.

Perhaps by not bringing this all up in a thread that is about a significant reduction in interest rates, on the part of the MSE Forum that's about savings - and therefore is, inevitably, rather obsessed with getting the best rates.

And which is therefore full of people upset about said reduction. Who really don't want to be told that it's all ok as they are relatively wealthy in a world context.  They came here to read and discuss the interest rate reduction not about how lucky we are to live as we do. 

If you want to highlight that we are, actually, relatively 'wealthy' in a world context (which is a fair point to make, just not going to win friends in this thread) there are probably more appropriate places within the forum to do so.

RetSol

nbrewitt said:

It’s fairly obvious that NS&I have been given the heads up from the BoE that they are going to go negative on rates at their next meeting 

Interesting comment and probably not too wide of the mark. 

coachman12

I have only just come to the pc and , first, seen an email from NS&I notifying me of the draconian changes to be made on 24 November; and, secondly , come to this forum where I see the debate is well underway. I haven't got time to wade through the posts so far, so forgive me if I repeat anything anyone has already said.
I am as disappointed as everyone else of course. The knock-on effect is likely to be that other savings' institutions will also lower their rates ( because they have only kept them at their abysmal levels over the past few months in order to at least "keep within viewing distance" of NS&I's best seller-----they will now , I believe , be able to reduce their present interest rates to savers because they no longer have to keep NS&I in sight. So they will go from abysmal to whatever is worse than abysmal.
I have used NS&I for years, during all the years that they have been unfashionable and uncompetitive , simply because I have to. And that will remain the case for large amounts which I will continue to keep in NS&I. But, like everyone else, I too would like to get a better interest rate on sums up to the FSCS Protection Limit. So I will be looking round like everyone else for an interest rate worth going to the hassle of moving some savings to. I'm sure there will be plenty of advice on this site and I think all Building Societies, etc will now beat NS&I rates. Whether it is worth bothering with them if they are just worth a few hundred quid extra -----and knowing that ( unlike NS&I's unique 2 month advance warning) they can drop their interest rates without notice------we'll have to see.
Personally, I can see myself just staying put with NS&I. But I know that is not the way for most other people ; and the advice and debate on this forum will intensify. Just imagine all the scores of threads we have had on MSE Forums over the past months, the  many hundreds of wasted postings about how NS&I , a  strange beast to so many, works.
Fortunately I still have fixed NS&I bonds which are at 2.5% and do not expire until next year or later. Does anyone else have any of these ?
My final comment is that I have absolutely no idea why the Govt would wish to take this action with NS&I at the present time, and my next task is to do the research which will enlighten me.
Good luck to everyone in this darkest of winters that lies ahead of us, both in terms of savings and in terms of matters that are so much more important and, indeed, a matter of life and death.

redpete

RyanHello said:

What a bunch of crooks

Why?  They are not taking money from you that you already have.  They are not going to give you less money in the future than they had previously promised.  They are giving you plenty of notice to prepare for the change.
The Government is just using NS&I as part of their overall economic strategy.

TUVOK

Can any one clarify what the position is on Income bonds please?
Does the drop in interest rate apply immediately? Can you withdraw your capital instantly?
Thank you.