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Savings and Investments thread
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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.0 -
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.4
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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.golfaddick said: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.
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!0 -
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 checkRob7Lee said: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.0 -
The Government cons the public shock ..
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 SLASHEDAccount (easy access unless stated) Current rate New rate from 24 Nov 2020 Income Bonds 1.16% 0.01% Direct Saver 1% 0.15% Investment Account 0.8% 0.01% Direct ISA 0.9% 0.1% Junior ISA - no access till child turns 18 3.25% 1.5% Premium Bonds - see Are they worth it? 1.4% (prize rate, not interest) 1% (from 1 Dec 2020) This article is from Martin Lewis's Money Saving Expert email.
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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?4 -
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.Addickted said: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?
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I guess they want people to spend their money, not save it.Addickted said: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?0 -
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.Simonsen said:
I guess they want people to spend their money, not save it.Addickted said: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?0 -
Or just print it!redman said:
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.Simonsen said:
I guess they want people to spend their money, not save it.Addickted said: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?
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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 ratesLincsaddick said:Premium Bonds - see Are they worth it? 1.4% (prize rate, not interest) 1% (from 1 Dec 2020) This article is from Martin Lewis's Money Saving Expert email.
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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.0
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Agreed.Rob7Lee said: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.
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.1 -
The daily ups and downs of my equity portfolio is bonkers! Stock Markets seem to officially belong to the world of fomo.0
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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 :-)bobmunro said:
Agreed.Rob7Lee said: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.
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.0 -
2 wins this month, 1 x 25 & 1 x 500
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Good month for us, £50 for me and £75 for the wife.0
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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.Rob7Lee said:
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 :-)bobmunro said:
Agreed.Rob7Lee said: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.
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.0 -
2 x £25.00 for me0
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Same as usual here 3x£25 for the wife, same for junior and bugger all for me.
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Well, someone's making money out of the low interest rates & its not the customer.Rob7Lee said:
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 :-)bobmunro said:
Agreed.Rob7Lee said: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.
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.1 -
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.golfaddick said:
Well, someone's making money out of the low interest rates & its not the customer.Rob7Lee said:
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 :-)bobmunro said:
Agreed.Rob7Lee said: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.
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.1 -
Same old same old, £25 for me, max holdings. £100 for Mrs R7L with the same....... I never win v's the misses!0
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When I moved Feb 2008 I was just coming to the end of a 2 year discount with Nationwide. That was base rate MINUS 1.25%.....golfaddick said:
Well, someone's making money out of the low interest rates & its not the customer.Rob7Lee said:
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 :-)bobmunro said:
Agreed.Rob7Lee said: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.
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.0 -
Slight difference between a discounted rate & a tracker. Are you sure it was based on the BOE base rate as discounted rates are usually based on the SVR. Nationwide over the years have generally offered very good rates. My memory fails me but they brought in their MMR rate in the early 2000's which was neither the BOE base rate nor their SVR.Rob7Lee said:
When I moved Feb 2008 I was just coming to the end of a 2 year discount with Nationwide. That was base rate MINUS 1.25%.....golfaddick said:
Well, someone's making money out of the low interest rates & its not the customer.Rob7Lee said:
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 :-)bobmunro said:
Agreed.Rob7Lee said: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.
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.0 -
I'm sure it was against the BoE base rate as it ran into something like Jan 2009 and right at the end my rate was something like 0.25%, I recall other people having one's that effectively went negative in 2009. Maybe it was a tracker and not a discount, was a while ago! I do remember having an L&G mortgage (worked there at the time) which was a discount about 4% off their SVR (which was about 8%), that would have been around 2000 I think.golfaddick said:
Slight difference between a discounted rate & a tracker. Are you sure it was based on the BOE base rate as discounted rates are usually based on the SVR. Nationwide over the years have generally offered very good rates. My memory fails me but they brought in their MMR rate in the early 2000's which was neither the BOE base rate nor their SVR.Rob7Lee said:
When I moved Feb 2008 I was just coming to the end of a 2 year discount with Nationwide. That was base rate MINUS 1.25%.....golfaddick said:
Well, someone's making money out of the low interest rates & its not the customer.Rob7Lee said:
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 :-)bobmunro said:
Agreed.Rob7Lee said: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.
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.
hard to believe I took a job at the woolwich back in 1993 simply to get a 5% mortgage, 5% now seems really expensive but at the time the average rate was maybe 8/9% so was well worth having!0 -
I remember getting a client a tracker deal of BOE minus 0.25%. And also another client a 120% mortgage with Northern Rock.Rob7Lee said:
I'm sure it was against the BoE base rate as it ran into something like Jan 2009 and right at the end my rate was something like 0.25%, I recall other people having one's that effectively went negative in 2009. Maybe it was a tracker and not a discount, was a while ago! I do remember having an L&G mortgage (worked there at the time) which was a discount about 4% off their SVR (which was about 8%), that would have been around 2000 I think.golfaddick said:
Slight difference between a discounted rate & a tracker. Are you sure it was based on the BOE base rate as discounted rates are usually based on the SVR. Nationwide over the years have generally offered very good rates. My memory fails me but they brought in their MMR rate in the early 2000's which was neither the BOE base rate nor their SVR.Rob7Lee said:
When I moved Feb 2008 I was just coming to the end of a 2 year discount with Nationwide. That was base rate MINUS 1.25%.....golfaddick said:
Well, someone's making money out of the low interest rates & its not the customer.Rob7Lee said:
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 :-)bobmunro said:
Agreed.Rob7Lee said: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.
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.
hard to believe I took a job at the woolwich back in 1993 simply to get a 5% mortgage, 5% now seems really expensive but at the time the average rate was maybe 8/9% so was well worth having!
Sorry, but I think I might have been responsible for the financial crash....😄3 -
When you look at it even with slightly sober eyes, 120% (and I remember Northern Rock went as high as 125%) was always going to be insanity.
A very close family friend was very senior in the Bank of England at the time, and still is, and I remember asking him about it all and he simply said that "they had a short term liquidity crisis which we could have solved, as soon as that got out in the open, it was always going to crash."
He wasn't bemoaning journalism at all but I seem to remember suggesting that Robert Preston was a good chunk to do with it all and he certainly didn't disagree.0 -
As soon as you saw people queuing at the branches, NR was done for.0
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NR was done by lending huge sums of money to people who couldn't afford to pay it back.
How on earth do you provide a secure loan when that security is less than the value of the loan by 25%?
Falling into negative equity can be dealt with long term, but secure lending to allow people to pay for the white goods, fixtures and fittings in a new property with enough left over for them to buy a new car, was just madness.
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