The Top Fixed Interest Savings Discussion Area

Nova1307

Would NS&I management have more 'intel' than banks on what the BoE might do at future interest rate decision meetings subject to inflation data etc? Of course BoE are independent but it surely they have informal discussions with the Treasury prior to making decisions?

Swipe

Nova1307 said:

Would NS&I management have more 'intel' than banks on what the BoE might do at future interest rate decision meetings subject to inflation data etc? Of course BoE are independent but it surely they have informal discussions with the Treasury prior to making decisions?

I doubt it. I would imagine outflows have been higher than usual over the last couple of months as people moved money away to chase better rates so I think they've just had to do something to encourage it back in.

SaveTheEuro

jacko74 said:

Hopefully the regular banks will now match NS&I's 6.2% for 1 year... I'd rather use one of them than have to deal with all the convoluted processes that NS&I seem to insist on using.

One option is from the Family Building Society. It pays slightly less, 6.1%, but you are locking the money away for 9 months, not 12 months.

https://www.familybuildingsociety.co.uk/savings/bonds/product-detail/9-month-fixed-rate-bond-(2)?_its=JTdCJTIydmlkJTIyJTNBJTIyZDg4MzIzNmMtMTFlZS00OGQzLWI4ODktOTI4MzFlMDM3MjBkJTIyJTJDJTIyc3RhdGUlMjIlM0ElMjJybHR%2BMTY5NDI3MTgxNH5sYW5kfjJfNTU5MV9kaXJlY3RfMDFkMWEzMzZlNmFiZmQyMDI4NjYxZDQ3YzFjNGEwZjUlMjIlN0Q%3D

mattojgb

SaveTheEuro said:

One option is from the Family Building Society. It pays slightly less, 6.1%, but you are locking the money away for 9 months, not 12 months.

This account has a minimum investment of £10000.

Does that need to be added on account opening or can it be built up over the 15 day funding period?

Thanks 

janusdesign

mattojgb said:

SaveTheEuro said:

One option is from the Family Building Society. It pays slightly less, 6.1%, but you are locking the money away for 9 months, not 12 months.

This account has a minimum investment of £10000.

Does that need to be added on account opening or can it be built up over the 15 day funding period?

Thanks 

I would suspect that you could build up to it with a number of smaller deposits - I looked at this last account week when I had some funds to deposit, but it was only £9.5k, so this wasn't an option for me.

it's worth noting that Family BS don't process deposits over the weekend, so even if you put £1 in as a test, it won't appear until Monday - and I speak as someone who deposited £1 in their EA account on Saturday and then realised it wouldn't show up until sometime on Monday !

Malchester

mattojgb said:

SaveTheEuro said:

One option is from the Family Building Society. It pays slightly less, 6.1%, but you are locking the money away for 9 months, not 12 months.

This account has a minimum investment of £10000.

Does that need to be added on account opening or can it be built up over the 15 day funding period?

Thanks 

I opened this account this last week. It can be funded in installments over a period of time. Can't remember how long. The account was very easy to open and two secure messages I sent were answered extremely quickly. Very impressed

mattojgb

Thanks. 9 months suits me better than 1 year, but I've already opened the NSI account. So I can open the Family account then close the NSI account and move the money.

SaveTheEuro

mattojgb said:

SaveTheEuro said:

One option is from the Family Building Society. It pays slightly less, 6.1%, but you are locking the money away for 9 months, not 12 months.

This account has a minimum investment of £10000.

Does that need to be added on account opening or can it be built up over the 15 day funding period?

Thanks 

You are correct. As the Family Building Society says “Additions are allowed for 15 calendar days after your account is opened.” 

TheWoodler

I have opened this account with Family Building Society. 

I prefer to send small payments as a test first, but their system wasn’t having that with this bond. I got a message saying that capital was lower than the minimum amount for this product, or words to that effect. It would only proceed to the next stage when I entered the magic sum of £10k. That’s over the threshold of my bank’s FP limit for a first-time payee. So plonk in £10k by debit card it is. 

Quite surprised by that because often you can pay in a set minimum in instalments below the threshold to make up the required minimum balance (eg the recent Melton bond) but that doesn’t seem to be the case here. Every institution operates slightly differently. 

Johnjdc

Nova1307 said:

Would NS&I management have more 'intel' than banks on what the BoE might do at future interest rate decision meetings subject to inflation data etc? Of course BoE are independent but it surely they have informal discussions with the Treasury prior to making decisions?

A more plausible theory is that government makes decisions more slowly than banks, so the 6.2% from NSI started being planned when the benchmark rate (1 year Gilts) was around 5.5% in July but didn't get launched until recently, whereas private banks are responding week by week and therefore pricing according to the 1 year Gilt rate as it stands today (5.1%).