NS&I savings to ...where?

eskbanker

mrkds said:

eskbanker said:

The expected 'average luck' return can't beat the published prize rate!  The typical current expected rate of circa 1.25% compares with the nominal 1.4%, and once the published rate drops to 1% the expected return will be more like 0.9%.

Ok i see. I didn't realise the calculator was still using the old 1.4% prize rate.

It's not so much 'old' as 'current'!  The lower prize rate doesn't apply until the December draw, so there's still the November one to come yet at the current rate, and the odds are recalculated every month ("The odds in the calculator are based on the prize distribution for the most recent draw; it does change slightly each month" and "Each month it runs for six hours, just to calculate the new odds!").

lisyloo

Sailtheworld said:

lisyloo said:

unkle said:

Retireby40 said:

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

Correct. The interest rates these days arent worth the hassle moving around. Best thing can do is reduce spend by about 1% and that will make the difference. See people asking about swapping £1000 in an account paying 0.01% to something 0.03%. For the hassle involved what is the point.

Only worthwhile if you've 100's of 1,000's - otherwise I agree, 

I always "do the maths".

So for example 0.5% on £40K is £200 which I'd consider worthwhile for say 30 mins effort.

If people really do want to hold lots of cash they may as well keep true emergency money in instant access and forget about the rate. Then lock the rest away in 1, 2 year accounts etc. Every 6 months or so check what's available and make adjustments as necessary - that's a true 30 minutes effort.

I get the feeling though that, for a lot of people, it's a more time consuming hobby involving daily trawls of best buy tables and additional research. It's a waste of headspace apart from anything else.

Why on earth would a money saver just "forget" about the rate.

I don't think every 6 months is a good strategy for an MSE.

You need to respond to events in either direction.

Not anything like daily but if (for example) there's an emergency interest rate cut then that's the time to keep an eye on things.

Lots of MSE's aren't doing it just for the pennies, but some of us follow events and find it interesting so it is a sort of hobby rather than a chore.

Personally I would only look if I become aware of market movements or my circumstances change, so painting us as anoraks is a bit unfair :-) but some of us do actually enjoy keeping abreast of things MSE. If you enjoy something it's not a core.

I browse the weekly email so that should be enough to tell me if the savings market is changing or there's a great offer available.

Personally my threshold is about £35 which would relate to the hassle.

coachman12

Another thread where the O/P never returns to clear up a few basic questions, without which proper replies cannot be posted----and by the way, O/P doesn't even post again at all to either to say thank you or to criticise the posts as he/she sees fit. But none of that stops the 24/7s , and others, from dissecting trivia such as is a calculator "old" or "current".  

eskbanker

coachman12 said:

Another thread where the O/P never returns to clear up a few basic questions, without which proper replies cannot be posted----and by the way, O/P doesn't even post again at all to either to say thank you or to criticise the posts as he/she sees fit. But none of that stops the 24/7s , and others, from dissecting trivia such as is a calculator "old" or "current".  

Believe it or not, threads on subjects like this (i.e. applicable to many) do evolve beyond simply seeking to answer a question posted over a week ago, although most of us manage to contribute to such discussions in a more constructive way than just trolling other posters....

NottinghamKnight

mrkds said:

eskbanker said:

The expected 'average luck' return can't beat the published prize rate!  The typical current expected rate of circa 1.25% compares with the nominal 1.4%, and once the published rate drops to 1% the expected return will be more like 0.9%.

Ok i see. I didn't realise the calculator was still using the old 1.4% prize rate. So I thought 1.25% was beating 1% prize rate. So expected  returns are even worse than I thought!

Well it's the current rate for the next few weeks, 1.4% that is. 

lisyloo

It's a discussion forum so expect people to discuss and even go off at tangeants (much of which is often useful).

If you don't like it well no-one has a gun  to your head. If you were paying for  professional service you might have cause for complaint but it's a free discussion forum.

I would have thought pointing out if information was out of date was useful content???

yes 24/7 is unhealthy but hey there's a pandemic on.

BTW - any good ideas where to put cash?

Sailtheworld

lisyloo said:

Sailtheworld said:

lisyloo said:

unkle said:

Retireby40 said:

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

Correct. The interest rates these days arent worth the hassle moving around. Best thing can do is reduce spend by about 1% and that will make the difference. See people asking about swapping £1000 in an account paying 0.01% to something 0.03%. For the hassle involved what is the point.

Only worthwhile if you've 100's of 1,000's - otherwise I agree, 

I always "do the maths".

So for example 0.5% on £40K is £200 which I'd consider worthwhile for say 30 mins effort.

If people really do want to hold lots of cash they may as well keep true emergency money in instant access and forget about the rate. Then lock the rest away in 1, 2 year accounts etc. Every 6 months or so check what's available and make adjustments as necessary - that's a true 30 minutes effort.

I get the feeling though that, for a lot of people, it's a more time consuming hobby involving daily trawls of best buy tables and additional research. It's a waste of headspace apart from anything else.

Why on earth would a money saver just "forget" about the rate.

I don't think every 6 months is a good strategy for an MSE.

You need to respond to events in either direction.

Not anything like daily but if (for example) there's an emergency interest rate cut then that's the time to keep an eye on things.

Lots of MSE's aren't doing it just for the pennies, but some of us follow events and find it interesting so it is a sort of hobby rather than a chore.

Personally I would only look if I become aware of market movements or my circumstances change, so painting us as anoraks is a bit unfair :-) but some of us do actually enjoy keeping abreast of things MSE. If you enjoy something it's not a core.

I browse the weekly email so that should be enough to tell me if the savings market is changing or there's a great offer available.

Personally my threshold is about £35 which would relate to the hassle.

You'd forget about the rate on real emergency savings because that would be a relatively small amount. Any interest gained by switching more than every six months would be trifling. You put the rest in 1, 2, 3 year accounts.

That means rates are only of interest on account anniversaries and whenever you have a look at instant access accounts for emergency fund. Literally 30 minutes a year.

If you're doing anymore than that it's because it's a hobby (fair enough) or a severe case of FOMO in case there's an interest rate move up when cash is fixed.

bundoran

eskbanker said:

It's not so much 'old' as 'current'!  The lower prize rate doesn't apply until the December draw, so there's still the November one to come yet at the current rate, and the odds are recalculated every month ("The odds in the calculator are based on the prize distribution for the most recent draw; it does change slightly each month" and "Each month it runs for six hours, just to calculate the new odds!").

Thank you for pointing this out Eskie. I'd forgotten that there was another draw before the prize fund rate goes down.

Cheers.  👍

lisyloo

Sailtheworld said:

lisyloo said:

Sailtheworld said:

lisyloo said:

unkle said:

Retireby40 said:

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

Correct. The interest rates these days arent worth the hassle moving around. Best thing can do is reduce spend by about 1% and that will make the difference. See people asking about swapping £1000 in an account paying 0.01% to something 0.03%. For the hassle involved what is the point.

Only worthwhile if you've 100's of 1,000's - otherwise I agree, 

I always "do the maths".

So for example 0.5% on £40K is £200 which I'd consider worthwhile for say 30 mins effort.

If people really do want to hold lots of cash they may as well keep true emergency money in instant access and forget about the rate. Then lock the rest away in 1, 2 year accounts etc. Every 6 months or so check what's available and make adjustments as necessary - that's a true 30 minutes effort.

I get the feeling though that, for a lot of people, it's a more time consuming hobby involving daily trawls of best buy tables and additional research. It's a waste of headspace apart from anything else.

Why on earth would a money saver just "forget" about the rate.

I don't think every 6 months is a good strategy for an MSE.

You need to respond to events in either direction.

Not anything like daily but if (for example) there's an emergency interest rate cut then that's the time to keep an eye on things.

Lots of MSE's aren't doing it just for the pennies, but some of us follow events and find it interesting so it is a sort of hobby rather than a chore.

Personally I would only look if I become aware of market movements or my circumstances change, so painting us as anoraks is a bit unfair :-) but some of us do actually enjoy keeping abreast of things MSE. If you enjoy something it's not a core.

I browse the weekly email so that should be enough to tell me if the savings market is changing or there's a great offer available.

Personally my threshold is about £35 which would relate to the hassle.

You'd forget about the rate on real emergency savings because that would be a relatively small amount. Any interest gained by switching more than every six months would be trifling. You put the rest in 1, 2, 3 year accounts.

That means rates are only of interest on account anniversaries and whenever you have a look at instant access accounts for emergency fund. Literally 30 minutes a year.

If you're doing anymore than that it's because it's a hobby (fair enough) or a severe case of FOMO in case there's an interest rate move up when cash is fixed.

Isn’t emergency cash 6 months spending? That’s not what I’d call a relatively small amount for a couple.
i wouldn’t want to put my “holiday fund” in a 1 year fixed. I might want a long haul holiday before that and i’d Want access. Some companies don’t accept credit cards for the main payment (only deposits).
I don’t think what you are talking about fits my requirements. Perhaps you are being too general? Or making assumptions?

but I guess “I’m out”, not sure I’m that interested in what you think of what other people do. I’m clear on my requirements and they make sense.
im only looking because of an event (an inheritance) I don’t normally spend a lot of time on it.

you haven’t provided any solid reason for anyone to change their behaviour, so your opinion is irrelevant and not useful.

cloud_dog

NS&I Income Bonds question.... (sorry to side step the maths lesson) 

Does anyone know the minimum amount you can leave in the NS&I Income Bond account?

I know the minimum payment is £500, so it would not be unreasonable to assume the minimum balance is also £500 but, thought I'd ask the question, as I didn't really want to leave £500 there; a pound would be ok. 

I'll be moving me 'ole ma's money to another account but thought I'd leave this one open as if anyone is likely to increase rates when the wind changes direction, hopefully NS&I will.