NS&I overshoots target

InvesterJones

https://www.standard.co.uk/business/money/ns-i-overshoots-net-financing-target-after-bonds-attract-ps10bn-of-investment-b1173737.html

Not enough people withdrew money, so they have more funding than their target.. doesn't look good for premium bonds, savings rates or bond maturity offers.

eskbanker

No big surprise that their other missed target was customer satisfaction (74% v 80%)!

Swipe

Damn, I have a growth bond due for renewal in August.

wmb194

eskbanker said:

No big surprise that their other missed target was customer satisfaction (74% v 80%)!

I'm surprised it's that high.

eskbanker

InvesterJones said:

Not enough people withdrew money, so they have more funding than their target.. doesn't look good for premium bonds, savings rates or bond maturity offers.

But the net financing targets relate to new funding minus outflows, and are zeroed at the start of each tax year, so overshooting last year presumably doesn't necessarily have any implications for this one, other than the fact that aggregate deposit balances will be very slightly higher than anticipated (i.e. a £0.8bn excess is much more significant in the context of a £10.5bn annual target than versus the £120+bn 'on deposit' already).

wmb194

InvesterJones said:

https://www.standard.co.uk/business/money/ns-i-overshoots-net-financing-target-after-bonds-attract-ps10bn-of-investment-b1173737.html

Not enough people withdrew money, so they have more funding than their target.. doesn't look good for premium bonds, savings rates or bond maturity offers.

By the end of October all of the one year 6.2% bonds will mature. 225,000 people opened and it must have been a lot of money so I'd imagine they'll be cognisant of the need to retain some of these deposits if they don't want to face a shortfall in Q4.

boingy

In the last couple of days I've had two texts from them telling me it will soon be time for me to decide what to do with my maturing bonds and that they'll contact me 30 days before they mature and that I'll have 30 days minus a few days to tell them what I want to do.

So they are telling me that they will soon be telling me something. Useful stuff. 

Can't decide whether to max out the Premium Bonds with the proceeds or do something else. If any clairvoyant can tell me what will happen in the autumn budget it might help me make an informed decision. 

Gers

Article in DM today.

DjangoUnchained

at the time the 6.2% was the best, now these bonds are finishing and theyve cut the rates to about 4% but there are plenty of 5% fixes around so dont see a problem.

Swipe

Gers said:

Article in DM today.

That's a pleasant surprise. I didn't think the one year rate would be above 5%.

mebu60

I have a letter in my NS&I online account confirming default option of renew at 5.15% for a further year. Rate will not reduce between now and maturity renewal but would receive higher rate should they go up between now and maturity renewal. Other renewal options are available!