Coventry Building Society have just released an instant access account paying 1.20% (2 withdrawals a year). Get in quick if interested as I'm sure it will close very soon.
Inevitable I suppose but really savage cuts to interest rates. Where now???
was just about to invest a sizeable chunk. still think I will as rates elsewhere are dire and at least there is still a chance of a prize even if reduced. it's the hope that kills you !!
Inevitable I suppose but really savage cuts to interest rates. Where now???
was just about to invest a sizeable chunk. still think I will as rates elsewhere are dire and at least there is still a chance of a prize even if reduced. it's the hope that kills you !!
Still works out a 1% equivalent on average on the Premium Bonds and as you say always the chance of the big one. They are still keeping the two £1m prizes but the £100k down from 7 to 4. I will also use some of my other NS&I savings to buy more Premium Bonds when the rates go down. Bunch of Gits all the same.
With markets globally dropping opportunities open up on sectors and stocks that benefitted from last major drop, a decent recovery some way off though, will be looking again at shares I have sold over the last 9-6 months. Pretty miffed though with NS&I
Coventry Building Society have just released an instant access account paying 1.20% (2 withdrawals a year). Get in quick if interested as I'm sure it will close very soon.
Especially if the BOE bring in negative interest rates.
I was reading earlier that the Fed have said that they won't be going in that direction & that US interest rates will be in the range of between 0%-0.25% for at least the next 3 years and probably longer.
Jupiter Asset Management (for it was they that had produced this article) said that they are against negative interest rates. This is where depositors have to PAY to hold money with a bank & borrowers get PAID to borrow money.
Interesting times, I don't see negative interest rates but then I didn't see COVID coming........!
I had another email last week from NS&I as I have some fixed rate bonds maturing in a month, doesn't look like i'll be keeping that money with them then. i think within 3 months you won't find an instant access accountant of 1% or more.
Think i'll just buy a property, already heavy on shares etc what with my SIPP and ISA's.
Interesting times, I don't see negative interest rates but then I didn't see COVID coming........!
I had another email last week from NS&I as I have some fixed rate bonds maturing in a month, doesn't look like i'll be keeping that money with them then. i think within 3 months you won't find an instant access accountant of 1% or more.
Think i'll just buy a property, already heavy on shares etc what with my SIPP and ISA's.
Still dont think property is the answer. Illiquid, not tax efficient (CGT on disposal and income tax on rental income) and recoveries after falls can be slow (certainly slower than an equity based recovery).
Then again, if its inside a Sipp that's slightly different, although still not the bees knees.
My go to investments would be:
ISA Pension Investment Bond Structured Product VCT EIS
Holding property in a company can be beneficial, dividends to shareholders (currently first £2k tax free) being able to offset fully the interest, corp tax etc etc.
Also I hope no one here invested in Wellesley........ if so you may have lost the lot.
Just got my annual SIPP statement. Aug 2019 to Aug 2020. Its gone up by 10.1%. Not bad considering in that period we've had an Election, Brexit & a global pandemic where a 1/3rd of the workforce have been furloughed or made redundant.
Just got my annual SIPP statement. Aug 2019 to Aug 2020. Its gone up by 10.1%. Not bad considering in that period we've had an Election, Brexit & a global pandemic where a 1/3rd of the workforce have been furloughed or made redundant.
Did you put in any contributions over that period? Mine over the past 12 months is currently at 13.4% but I had some individual share trades that probably made up 4-5% of that so on funds etc you're probably slightly ahead of me.
Good return though, would be happy with that every year especially with inflation/interest rates so low!
My main ISA's is doing a lot better (circa 19%) but that was probably at least in part timing as I was out of the market for the worst couple of months so sold high and re bought low, pure luck though and down to HSBC's incompetence!
Interesting times, I don't see negative interest rates but then I didn't see COVID coming........!
I had another email last week from NS&I as I have some fixed rate bonds maturing in a month, doesn't look like i'll be keeping that money with them then. i think within 3 months you won't find an instant access accountant of 1% or more.
Think i'll just buy a property, already heavy on shares etc what with my SIPP and ISA's.
RE your fixed bonds. I also had an email saying I had bond maturing on 19 October. The email was dated 18 Sept. On checking if I do nothing it will auto renew into another bond at 1.3%. Not brilliant but unlikely to do better so will let auto renew. Suggest you check
State-backed NS&I had been a bastion of hope for savers. Its deals have been best buys for months as the Govt, desperate to bring in cash, tasked it with raising £35bn this tax year, up from the normal £6bn. Monday's announcement of massive rate cuts was therefore a huge shock. Chief exec Ian Ackerley justified it with: "It is time for NS&I to return to a more normal competitive position for our products." That's terrifying for savers, as its new rates are mostly just 0.01%, ie, 10p a year per £1,000 - or to put it another way - nowt. So NS&I defines normal as nowt.
This does seem a really mad move just as we're about to hit a second wave of Covid.
Billions of pounds worth of hard cash are going to be moved out of NS&I, just as the Government needs it. Surely they should be trying to be even more competitive to attract further investment?
This does seem a really mad move just as we're about to hit a second wave of Covid.
Billions of pounds worth of hard cash are going to be moved out of NS&I, just as the Government needs it. Surely they should be trying to be even more competitive to attract further investment?
Perhaps they think they can borrow the money more cheaply than offering interest rates well above the market. The Fed said that would be keeping US interest rates at 0%-0.25% for the next 3 years & the BOE are thinking about negative interest rates.
This does seem a really mad move just as we're about to hit a second wave of Covid.
Billions of pounds worth of hard cash are going to be moved out of NS&I, just as the Government needs it. Surely they should be trying to be even more competitive to attract further investment?
I guess they want people to spend their money, not save it.
This does seem a really mad move just as we're about to hit a second wave of Covid.
Billions of pounds worth of hard cash are going to be moved out of NS&I, just as the Government needs it. Surely they should be trying to be even more competitive to attract further investment?
I guess they want people to spend their money, not save it.
Can't believe the current rates would affect a person's decision to spend or save. The reality is that the government believes it can borrow cheaper elsewhere than retail.
This does seem a really mad move just as we're about to hit a second wave of Covid.
Billions of pounds worth of hard cash are going to be moved out of NS&I, just as the Government needs it. Surely they should be trying to be even more competitive to attract further investment?
I guess they want people to spend their money, not save it.
Can't believe the current rates would affect a person's decision to spend or save. The reality is that the government believes it can borrow cheaper elsewhere than retail.
This article is from Martin Lewis's Money Saving Expert email.
I will be interested to see his analysis on premium bonds in December when he publishes it. Looking round at current rates the 1% could be attractive option even though I realise you won't earn that. Be interested to see his table of premium bonds v other rates and showing the % of people beating other rates
With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
Agreed.
The bigger the holding the more likely you are to approach the 1%.
With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
Agreed.
The bigger the holding the more likely you are to approach the 1%.
Pretty tough to find those rates elsewhere for instant access.
Yup, i'll take the 1.82%. It's quite funny, my wife see's it as a game and gets up early to see what she's won on the day :-)
It was only last January I got my daughter to open some 5 year fixes which then was 2.7%! Even the 3 year was 2.4% and 1 year I think was over 2%, 2.1% from memory. Crazy how much it's dropped in 18 months.
With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
Agreed.
The bigger the holding the more likely you are to approach the 1%.
Pretty tough to find those rates elsewhere for instant access.
Yup, i'll take the 1.82%. It's quite funny, my wife see's it as a game and gets up early to see what she's won on the day :-)
It was only last January I got my daughter to open some 5 year fixes which then was 2.7%! Even the 3 year was 2.4% and 1 year I think was over 2%, 2.1% from memory. Crazy how much it's dropped in 18 months.
Yep, last September invested with Wyelands Bank at 1.92% fixed for a year and RCI Banque at 2.2% for two years. Can’t get anywhere near that now. That’s why I’ve reinvested in the Bonds. At least there is the chance of winning something.
With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
Agreed.
The bigger the holding the more likely you are to approach the 1%.
Pretty tough to find those rates elsewhere for instant access.
Yup, i'll take the 1.82%. It's quite funny, my wife see's it as a game and gets up early to see what she's won on the day :-)
It was only last January I got my daughter to open some 5 year fixes which then was 2.7%! Even the 3 year was 2.4% and 1 year I think was over 2%, 2.1% from memory. Crazy how much it's dropped in 18 months.
Well, someone's making money out of the low interest rates & its not the customer.
Slightly different tack, but still on the subject, but this time mortgage rates. 15 years ago you could get a base rate tracker at around 0.39% above BOE. These all disappeared in 2008/9 when the banking crisis hit. Over time they have started to reappear but nowhere near as good. 90% of deals nowadays are 2 or 5 year fixed - Nationwide are about the only main lender that still does a decent 2 year tracker.
2 years ago I got a client a 2 year deal with them of 0.69% above base (which then was 0.5) - so they got 1.19%. 2 years are up & went to do a rate switch (where you stay with the same lender & simply take their new rate). No extra borrowing & same LTV. Base rate is now 0.1% so client expecting a rate of around 0.8%, maybe even close to 1%. Nope. Differential is now 1.14%, making the total rate 1.24%.......which is HIGHER than they had 2 years ago. That was in August. Nationwide have this week pulled their deals & brought out new ones. The differential is now at 1.59% !!! Almost 1% more than 2 years ago.
As I said, someones making money & it's not the customer.
With savings rates as they are for cash in the bank Premium bonds isn't a bad alternative right now despite the reducing overall prize pool. In theory I should roughly average 3 prizes a month still on the two holdings.
Agreed.
The bigger the holding the more likely you are to approach the 1%.
Pretty tough to find those rates elsewhere for instant access.
Yup, i'll take the 1.82%. It's quite funny, my wife see's it as a game and gets up early to see what she's won on the day :-)
It was only last January I got my daughter to open some 5 year fixes which then was 2.7%! Even the 3 year was 2.4% and 1 year I think was over 2%, 2.1% from memory. Crazy how much it's dropped in 18 months.
Well, someone's making money out of the low interest rates & its not the customer.
Slightly different tack, but still on the subject, but this time mortgage rates. 15 years ago you could get a base rate tracker at around 0.39% above BOE. These all disappeared in 2008/9 when the banking crisis hit. Over time they have started to reappear but nowhere near as good. 90% of deals nowadays are 2 or 5 year fixed - Nationwide are about the only main lender that still does a decent 2 year tracker.
2 years ago I got a client a 2 year deal with them of 0.69% above base (which then was 0.5) - so they got 1.19%. 2 years are up & went to do a rate switch (where you stay with the same lender & simply take their new rate). No extra borrowing & same LTV. Base rate is now 0.1% so client expecting a rate of around 0.8%, maybe even close to 1%. Nope. Differential is now 1.14%, making the total rate 1.24%.......which is HIGHER than they had 2 years ago. That was in August. Nationwide have this week pulled their deals & brought out new ones. The differential is now at 1.59% !!! Almost 1% more than 2 years ago.
As I said, someones making money & it's not the customer.
Surely this is lenders anticipating taking a hit on some of the money they have already lent out and trying to build in a bit of slack to cover this.
Harsh as this may sound as someone who has managed NHS services since the last economic crisis (caused largely by lenders taking an over ebullient position to the level of risk) and then having to deal with the resultant public service cuts that paid for this. I am glad that caution is being shown to lending at the moment.
Comments
Anyone got any good share tips?
I was reading earlier that the Fed have said that they won't be going in that direction & that US interest rates will be in the range of between 0%-0.25% for at least the next 3 years and probably longer.
Jupiter Asset Management (for it was they that had produced this article) said that they are against negative interest rates. This is where depositors have to PAY to hold money with a bank & borrowers get PAID to borrow money.
Get used to the new normal.
I had another email last week from NS&I as I have some fixed rate bonds maturing in a month, doesn't look like i'll be keeping that money with them then. i think within 3 months you won't find an instant access accountant of 1% or more.
Think i'll just buy a property, already heavy on shares etc what with my SIPP and ISA's.
Then again, if its inside a Sipp that's slightly different, although still not the bees knees.
My go to investments would be:
ISA
Pension
Investment Bond
Structured Product
VCT
EIS
Also I hope no one here invested in Wellesley........ if so you may have lost the lot.
Good return though, would be happy with that every year especially with inflation/interest rates so low!
My main ISA's is doing a lot better (circa 19%) but that was probably at least in part timing as I was out of the market for the worst couple of months so sold high and re bought low, pure luck though and down to HSBC's incompetence!
SAVINGS NEWS: Devastating blow as NS&I slashes rates, it'll pay virtually NOTHING on lots of accounts from Nov - what to do?
State-backed NS&I had been a bastion of hope for savers. Its deals have been best buys for months as the Govt, desperate to bring in cash, tasked it with raising £35bn this tax year, up from the normal £6bn. Monday's announcement of massive rate cuts was therefore a huge shock. Chief exec Ian Ackerley justified it with: "It is time for NS&I to return to a more normal competitive position for our products." That's terrifying for savers, as its new rates are mostly just 0.01%, ie, 10p a year per £1,000 - or to put it another way - nowt. So NS&I defines normal as nowt.
NS&I SAVINGS RATES SLASHED
This article is from Martin Lewis's Money Saving Expert email.
Billions of pounds worth of hard cash are going to be moved out of NS&I, just as the Government needs it. Surely they should be trying to be even more competitive to attract further investment?
The bigger the holding the more likely you are to approach the 1%.
1% instant access tax free equates to:
Basic Rate Tax Payer = 1.25% Gross
Higher Rate Tax Payer = 1.67% Gross
Additional Rate Tax Payer = 1.82% Gross
Pretty tough to find those rates elsewhere for instant access.
It was only last January I got my daughter to open some 5 year fixes which then was 2.7%! Even the 3 year was 2.4% and 1 year I think was over 2%, 2.1% from memory. Crazy how much it's dropped in 18 months.
Slightly different tack, but still on the subject, but this time mortgage rates. 15 years ago you could get a base rate tracker at around 0.39% above BOE. These all disappeared in 2008/9 when the banking crisis hit. Over time they have started to reappear but nowhere near as good. 90% of deals nowadays are 2 or 5 year fixed - Nationwide are about the only main lender that still does a decent 2 year tracker.
2 years ago I got a client a 2 year deal with them of 0.69% above base (which then was 0.5) - so they got 1.19%. 2 years are up & went to do a rate switch (where you stay with the same lender & simply take their new rate). No extra borrowing & same LTV. Base rate is now 0.1% so client expecting a rate of around 0.8%, maybe even close to 1%. Nope. Differential is now 1.14%, making the total rate 1.24%.......which is HIGHER than they had 2 years ago. That was in August. Nationwide have this week pulled their deals & brought out new ones. The differential is now at 1.59% !!! Almost 1% more than 2 years ago.
As I said, someones making money & it's not the customer.
Harsh as this may sound as someone who has managed NHS services since the last economic crisis (caused largely by lenders taking an over ebullient position to the level of risk) and then having to deal with the resultant public service cuts that paid for this. I am glad that caution is being shown to lending at the moment.