Any Product That Would Pay Say 3% for Bals £500,000+

GSP

Daliah said:

Duplicate of https://forums.moneysavingexpert.com/discussion/6397797/longest-term-savings-rate?

Yes, sorry!

GSP

wmb194 said:

GSP said:

wmb194 said:

GSP said:

Looking for a product out there that would guarantee 3% p.a. for the foreseeable if anyone knows of any?
Thanks

Lots of savings bonds providers will accept deposits in the millions e.g., Tesco Bank up to £5m. Just look through Moneyfacts' savings tables.

As I type two year gilts are offering 3.2% p.a..

https://www.bloomberg.com/markets/rates-bonds/government-bonds/uk

https://www.tescobank.com/savings/fixed/

Thanks. Anything longer than 20 years!

If you're being serious, follow my link to the gilts summary: 30yr 3.67%.

Edit: 50yr gilt c.3.2%. 

https://www.marketwatch.com/investing/bond/tmbmkgb-50y?countrycode=bx

If you're looking for a perpetual the closest these days are irredeemable preference shares e.g., Aviva's General Accident 8.875%, LSE:GACA, was yielding 7.75% when I looked earlier. These aren't nearly as low risk as the other options, though.

https://www.londonstockexchange.com/stock/GACA/general-accident-plc/company-page

Thanks.
On £750,000 in year 1 would you know if a long term fixed Gilt say paid 3% p.a. (£22,500), could I draw that interest amount annually along with say £15,000 from the £750,000. Then on year 2 it’s 3% on £735,000 (£22,050) etc.

Linton

GSP said:

wmb194 said:

GSP said:

wmb194 said:

GSP said:

Looking for a product out there that would guarantee 3% p.a. for the foreseeable if anyone knows of any?
Thanks

Lots of savings bonds providers will accept deposits in the millions e.g., Tesco Bank up to £5m. Just look through Moneyfacts' savings tables.

As I type two year gilts are offering 3.2% p.a..

https://www.bloomberg.com/markets/rates-bonds/government-bonds/uk

https://www.tescobank.com/savings/fixed/

Thanks. Anything longer than 20 years!

If you're being serious, follow my link to the gilts summary: 30yr 3.67%.

Edit: 50yr gilt c.3.2%. 

https://www.marketwatch.com/investing/bond/tmbmkgb-50y?countrycode=bx

If you're looking for a perpetual the closest these days are irredeemable preference shares e.g., Aviva's General Accident 8.875%, LSE:GACA, was yielding 7.75% when I looked earlier. These aren't nearly as low risk as the other options, though.

https://www.londonstockexchange.com/stock/GACA/general-accident-plc/company-page

Thanks.
On £750,000 in year 1 would you know if a long term fixed Gilt say paid 3% p.a. (£22,500), could I draw that interest amount annually along with say £15,000 from the £750,000. Then on year 2 it’s 3% on £735,000 (£22,050) etc.

Gilt interest is paid to you directly., not reinvested.

Two concerns with your plan:

 - inflation, the value of 3% on £759k is likely to decrease significantly over 30 years.
 - price volatility, although the income and repayment at maturity are fixed, the price of the bonds could vary significantly in the meantime.

mooneysaver

Daliah said:

Can't believe no replies have mentioned FSCS yet

FSCS rates are very poor at the moment, you'd be lucky to get 1%

Daliah

mooneysaver said:

Daliah said:

Can't believe no replies have mentioned FSCS yet

FSCS rates are very poor at the moment, you'd be lucky to get 1%

FSCS doesn’t do rates.

GSP

Linton said:

GSP said:

wmb194 said:

GSP said:

wmb194 said:

GSP said:

Looking for a product out there that would guarantee 3% p.a. for the foreseeable if anyone knows of any?
Thanks

Lots of savings bonds providers will accept deposits in the millions e.g., Tesco Bank up to £5m. Just look through Moneyfacts' savings tables.

As I type two year gilts are offering 3.2% p.a..

https://www.bloomberg.com/markets/rates-bonds/government-bonds/uk

https://www.tescobank.com/savings/fixed/

Thanks. Anything longer than 20 years!

If you're being serious, follow my link to the gilts summary: 30yr 3.67%.

Edit: 50yr gilt c.3.2%. 

https://www.marketwatch.com/investing/bond/tmbmkgb-50y?countrycode=bx

If you're looking for a perpetual the closest these days are irredeemable preference shares e.g., Aviva's General Accident 8.875%, LSE:GACA, was yielding 7.75% when I looked earlier. These aren't nearly as low risk as the other options, though.

https://www.londonstockexchange.com/stock/GACA/general-accident-plc/company-page

Thanks.
On £750,000 in year 1 would you know if a long term fixed Gilt say paid 3% p.a. (£22,500), could I draw that interest amount annually along with say £15,000 from the £750,000. Then on year 2 it’s 3% on £735,000 (£22,050) etc.

Gilt interest is paid to you directly., not reinvested.

Two concerns with your plan:

 - inflation, the value of 3% on £759k is likely to decrease significantly over 30 years.
 - price volatility, although the income and repayment at maturity are fixed, the price of the bonds could vary significantly in the meantime.

In time we would be both withdrawing a state pension and would not need to withdraw as much from the savings.
But, when you mention about price varying on bonds that is uncertainty, and it’s the uncertainty which goes against my idea.

wmb194

GSP said:

Linton said:

GSP said:

wmb194 said:

GSP said:

wmb194 said:

GSP said:

Looking for a product out there that would guarantee 3% p.a. for the foreseeable if anyone knows of any?
Thanks

Lots of savings bonds providers will accept deposits in the millions e.g., Tesco Bank up to £5m. Just look through Moneyfacts' savings tables.

As I type two year gilts are offering 3.2% p.a..

https://www.bloomberg.com/markets/rates-bonds/government-bonds/uk

https://www.tescobank.com/savings/fixed/

Thanks. Anything longer than 20 years!

If you're being serious, follow my link to the gilts summary: 30yr 3.67%.

Edit: 50yr gilt c.3.2%. 

https://www.marketwatch.com/investing/bond/tmbmkgb-50y?countrycode=bx

If you're looking for a perpetual the closest these days are irredeemable preference shares e.g., Aviva's General Accident 8.875%, LSE:GACA, was yielding 7.75% when I looked earlier. These aren't nearly as low risk as the other options, though.

https://www.londonstockexchange.com/stock/GACA/general-accident-plc/company-page

Thanks.
On £750,000 in year 1 would you know if a long term fixed Gilt say paid 3% p.a. (£22,500), could I draw that interest amount annually along with say £15,000 from the £750,000. Then on year 2 it’s 3% on £735,000 (£22,050) etc.

Gilt interest is paid to you directly., not reinvested.

Two concerns with your plan:

 - inflation, the value of 3% on £759k is likely to decrease significantly over 30 years.
 - price volatility, although the income and repayment at maturity are fixed, the price of the bonds could vary significantly in the meantime.

In time we would be both withdrawing a state pension and would not need to withdraw as much from the savings.
But, when you mention about price varying on bonds that is uncertainty, and it’s the uncertainty which goes against my idea.

If the plan is to hold to maturity then how their prices move in the market isn't relevant. It's only relevant if you planned to sell. To minimise this, rather than putting all of your money into a single issue, you could build a 'ladder' of them where they mature at times that suit.

Directly owning an extremely long dated conventional gilt is analogous to buying a level annuity, it's just that you'll still have control of the asset.

Gilts pay interest every six months. If you're really interested then you should try to understand bond basics e.g., yield to maturity, running yield, the consequences of buying above and below the par value of the bond.

mooneysaver

Daliah said:

mooneysaver said:

Daliah said:

Can't believe no replies have mentioned FSCS yet

FSCS rates are very poor at the moment, you'd be lucky to get 1%

FSCS doesn’t do rates.

OP is looking for a savings account.

Daliah

mooneysaver said:

Daliah said:

mooneysaver said:

Daliah said:

Can't believe no replies have mentioned FSCS yet

FSCS rates are very poor at the moment, you'd be lucky to get 1%

FSCS doesn’t do rates.

OP is looking for a savings account.

I know. 

May I suggest you google FSCS?

Albermarle

mooneysaver said:

Daliah said:

mooneysaver said:

Daliah said:

Can't believe no replies have mentioned FSCS yet

FSCS rates are very poor at the moment, you'd be lucky to get 1%

FSCS doesn’t do rates.

OP is looking for a savings account.

Compare The Best UK Savings Accounts | moneyfacts.co.uk

All the savings accounts in the above link are FSCS protected and paying a lot more than 1 %