Premium Bonds down to 4.40% for March 2024 draw

FIREDreamer

From NSI website …

boingy

Blimey, they didn't waste any time. It took them ages to respond to rising interest rates.

El_Torro

Would be nice if they waited until interest rates actually go down, though not unexpected in the current situation. 

The reduction is lower than it could have been as well. 

Maybe a sign that NS&I is holding more cash than its target.

eskbanker

El_Torro said:

Maybe a sign that NS&I is holding more cash than its target.

Yes, by the end of Q2 they'd already reached £9.8bn of their full-year target of £7.5bn +/- £3bn, so would have been at risk of overshooting, and hence:

Andrew Westhead, NS&I Retail Director, said:

“These changes reflect our requirement to strike a balance between the interests of our savers, taxpayers and the stability of the broader financial services sector. In a dynamic savings market, it’s important that our rates are set at an appropriate position against those of our competitors as we work towards meeting our annual Net Financing target.

https://nsandi-corporate.com/news-research/news/premium-bonds-prize-fund-rate-reduced-march-2024-draw
https://nsandi-corporate.com/news-research/news/nsi-delivers-ps77-billion-net-financing-government-q2-2023-24

Swipe

Let's face it, my PB luck can't get any worse.

Andreg

It seems NS&I are increasingly targetting wealthy savers who can afford to tie-up their money in five year deposits with no withdrawals.

eskbanker

Andreg said:

It seems NS&I are increasingly targetting wealthy savers who can afford to tie-up their money in five year deposits with no withdrawals.

Based on....?

InvesterJones

eskbanker said:

Andreg said:

It seems NS&I are increasingly targetting wealthy savers who can afford to tie-up their money in five year deposits with no withdrawals.

Based on....?

The fact the longest you can tie your money up with them is currently three years, yet they offer more 'interest' on their easy access premium bonds?

FIREDreamer

eskbanker said:

Andreg said:

It seems NS&I are increasingly targetting wealthy savers who can afford to tie-up their money in five year deposits with no withdrawals.

Based on....?

Index linked certificates renewals are now tied in for the duration with no access at all. I won’t be renewing mine.

Albermarle

FIREDreamer said:

eskbanker said:

Andreg said:

It seems NS&I are increasingly targetting wealthy savers who can afford to tie-up their money in five year deposits with no withdrawals.

Based on....?

Index linked certificates renewals are now tied in for the duration with no access at all. I won’t be renewing mine.

Looking at previous threads on this you will be an outlier.
Despite the new restrictions, where else can you get a 100% safe investment that is guaranteed to increase with inflation?
If they offered new issues there would be a very long queue.

RedImp_2

El_Torro said:

Would be nice if they waited until interest rates actually go down, though not unexpected in the current situation. 

The reduction is lower than it could have been as well. 

Maybe a sign that NS&I is holding more cash than its target.

The BOE rate maybe but savings rates especially longer term have been going down I would say