Castle Trust Bank

masonic

20122013 said:

masonic said:

Likely if I were looking for a 5-year cash ISA fix, I'd have taken a 0.03% hit to go with Shawbrook given the benefit of being able to add to it over the term if I wanted.

I emailed and then called CTB to cancel my application. I had to ask for written confirmation 5 times and their respond was told it is being cancelled and finally, he agreed to email me that was 11 hours ago..  next step is where to put this money, I have opened a Shawbrook before CTB.

'UK Treasury Bills'?? 

HL: ' Treasury Bills are another way the UK government can raise money for public spending, like they do with Government bonds (gilts). But where gilts pay regular interest (called coupons), Treasury bills don't earn interest payments.'

Treasury bills - Hargreaves Lansdown

If Treasury bills don't earn interest payments - why would some people buy them?  Maybe looking into Gilts?  or do 5 year fixed accounts?

To be fair, the page you have linked gives a pretty good overview and answers your question about why some people would buy them. I don't find them particularly interesting.

At the moment, a low coupon 5 year gilt, say TG30, would net you 3.9% after basic rate tax (equivalent to a rate of 4.88% in a savings account taxed at 20%), and you could get more if you opted for longer duration. This might be interesting if you have money outside an ISA, but doesn't beat the best 5 year cash ISAs. If you wanted some inflation protection, you could get RPI+0.7% ish using an index-linked gilt. Index linked gilts are rather more complex again.

It's unclear exactly what you are trying to achieve. You say you'd already applied for a Shawbrook 5 year fix, so why wouldn't the money go there?

poseidon1

20122013 said:

masonic said:

Likely if I were looking for a 5-year cash ISA fix, I'd have taken a 0.03% hit to go with Shawbrook given the benefit of being able to add to it over the term if I wanted.

I emailed and then called CTB to cancel my application. I had to ask for written confirmation 5 times and their respond was told it is being cancelled and finally, he agreed to email me that was 11 hours ago..  next step is where to put this money, I have opened a Shawbrook before CTB.

'UK Treasury Bills'?? 

HL: ' Treasury Bills are another way the UK government can raise money for public spending, like they do with Government bonds (gilts). But where gilts pay regular interest (called coupons), Treasury bills don't earn interest payments.'

Treasury bills - Hargreaves Lansdown

If Treasury bills don't earn interest payments - why would some people buy them?  Maybe looking into Gilts?  or do 5 year fixed accounts?

The returns on short term Treasury bills are reasonably aligned with bank base rates.

The last 3 month bill I purchased via HL maturing March this year  returned £10,102  on a £9985.99 investment, so an annualised interest rate of 4.66%.

Not noteworthy but somewhat higher than HL were paying on uninvested ISA cash at the time. Its simply a risk free home for relatively short term cash. MMFs were returning higher amounts but HL's 0.45% fees on funds would have eaten into the return.

See link below


https://forums.moneysavingexpert.com/discussion/6570868/uk-3-month-6-month-zero-coupon-treasury-bills-closes-with-hl-28-november#latest

theredrose

Prior to becoming a regulated bank in 2020, Castle Trust offered Fortress Bond investments which provided a fixed rate of return over a fixed period. It also offered Housa investments with returns linked to the house price index. When it became Castle Trust Bank in 2020, a fully authorised bank, sale of those investments stopped and it started offering traditional fixed term, fixed rate savings accounts with £85,000 FSCS protection to savers instead. The range of accounts available includes ISAs, and has expanded to include Notice Accounts.