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NS&I Announces Reduction in Interest Rates

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Stompa
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Re: NS&I Announces Reduction in Interest Rates

#342079

Postby Stompa » September 22nd, 2020, 11:49 pm

Myfyr wrote:Watch out for the big exodus in funds.

Well they seem to have failed in their promise to 'For withdrawals up to and including £50,000 you'll receive the money in your bank account within the next banking day'. Perhaps they've run out of money.....

absolutezero
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Re: NS&I Announces Reduction in Interest Rates

#342130

Postby absolutezero » September 23rd, 2020, 9:17 am

Bouleversee wrote:
Steveam wrote:Thank heavens for my long held (and rolled forward) Index linked savings certificates.

Best wishes,

Steve


Hear, Hear! At least they will keep up with inflation, we hope.

Albeit CPI - they shafted us with removing the RPI linking and replaced it with the (usually lower) CPI measure.

mike
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Re: NS&I Announces Reduction in Interest Rates

#342185

Postby mike » September 23rd, 2020, 11:12 am

Stompa wrote:
Myfyr wrote:Watch out for the big exodus in funds.

Well they seem to have failed in their promise to 'For withdrawals up to and including £50,000 you'll receive the money in your bank account within the next banking day'. Perhaps they've run out of money.....


I gave a withdrawal instruction late morning on Monday this week from my Income Bonds, and the funds were in my Santander bank account late afternoon yesterday (Tuesday), so for me, it did work as advertised.

Stompa
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Re: NS&I Announces Reduction in Interest Rates

#342197

Postby Stompa » September 23rd, 2020, 11:38 am

mike wrote:
Stompa wrote:
Myfyr wrote:Watch out for the big exodus in funds.

Well they seem to have failed in their promise to 'For withdrawals up to and including £50,000 you'll receive the money in your bank account within the next banking day'. Perhaps they've run out of money.....


I gave a withdrawal instruction late morning on Monday this week from my Income Bonds, and the funds were in my Santander bank account late afternoon yesterday (Tuesday), so for me, it did work as advertised.

Hmmm, I gave my instruction at a similar time, still no sign of it in Santander.

mutantpoodle
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Re: NS&I Announces Reduction in Interest Rates

#342241

Postby mutantpoodle » September 23rd, 2020, 1:56 pm

i gave instruction monday afternoon...money appeared in my account tuesday pm
now moved on again as nomiated acct doesnt pay interest

but they will see mass withdrawals and I imagine they will be surprised!!

scrumpyjack
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Re: NS&I Announces Reduction in Interest Rates

#342243

Postby scrumpyjack » September 23rd, 2020, 2:00 pm

mutantpoodle wrote:i gave instruction monday afternoon...money appeared in my account tuesday pm
now moved on again as nomiated acct doesnt pay interest

but they will see mass withdrawals and I imagine they will be surprised!!


HMG won't be worried, they'll just print more money!

No point in withdrawing yet as you still get 1% for another 2 months.

mutantpoodle
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Re: NS&I Announces Reduction in Interest Rates

#342250

Postby mutantpoodle » September 23rd, 2020, 2:17 pm

No point in withdrawing yet as you still get 1% for another 2 months.[/quote]

indeed but in the meantime an alternative currently paying decent (Ha Ha Ha) rate might disappear

for example
The Skipton opened an account paying 1.2% last week
i opened one each for all family with +/= £10 in each
now that account not open to new customers
but I can move money into it!

PinkDalek
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Re: NS&I Announces Reduction in Interest Rates

#342265

Postby PinkDalek » September 23rd, 2020, 3:20 pm

scrumpyjack wrote:No point in withdrawing yet as you still get 1% for another 2 months.


I'm not withdrawing yet, fwiiw, but that's the rate for their Direct Saver 1.00% gross/AER, whereas Income Bonds remain at 1.15% gross / 1.16% AER until 23 November 2020:

https://www.nsandi.com/interest-rates

Gan020
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Re: NS&I Announces Reduction in Interest Rates

#343534

Postby Gan020 » September 28th, 2020, 5:59 pm

My notes show that at the end of 2019, NSandI had £179b invested with them of which £89b premium bonds, £40b in the direct savers, £22b in savings certificates and £20b in guaranteed bonds. The rest if Junior ISA's and stuff.

Since 2019 NSandI have taken in £30b and their target for the year is £35b. Premium bonds are flowing in at the rate of £1.5b a month so say £9b for the last 6 months which would take them £4b over their total.

I would guess by now direct savers are about £60b and I imagine 90%+ of this is going to flow out, which leads me to think either NSandI have changed their target or I can't do maths. Or perhaps we are going to see another turnaround by NSandI as they realise more people are moving their money out than they think. Or perhaps they are going to launch some new products which offer fixed long term rates which would better suit the governement financing needs.

Bouleversee
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Re: NS&I Announces Reduction in Interest Rates

#343548

Postby Bouleversee » September 28th, 2020, 6:31 pm

I'm not so sure about your estimates of money flowing out. Where to?

richlist
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Re: NS&I Announces Reduction in Interest Rates

#343550

Postby richlist » September 28th, 2020, 6:39 pm

I'm my case to any account that pays more than 0.01%
Hopefully there will still be a few.

Clariman
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Re: NS&I Announces Reduction in Interest Rates

#343752

Postby Clariman » September 29th, 2020, 5:19 pm

Bouleversee wrote:I'm not so sure about your estimates of money flowing out. Where to?

Well I've moved 2 x 20K into easy access cash ISAs already. The rest will go in a 2 year Fixed account with Aldemore over the next week. I'm not leaving 1 penny at 0.01%

AleisterCrowley
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Re: NS&I Announces Reduction in Interest Rates

#343764

Postby AleisterCrowley » September 29th, 2020, 6:09 pm

I opened a Paragon ISA account recently at 0.85% fixed for one year - that was a transfer from Nationwide who dropped rates massively.
Not sure if I could do another transfer in from NS&I as they are often restricted to account opening.

Stompa
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Re: NS&I Announces Reduction in Interest Rates

#343766

Postby Stompa » September 29th, 2020, 6:27 pm

AleisterCrowley wrote:I opened a Paragon ISA account recently at 0.85% fixed for one year - that was a transfer from Nationwide who dropped rates massively.
Not sure if I could do another transfer in from NS&I as they are often restricted to account opening.

The 1 year fixed seems to have ceased to exist, but for the 2 year it says: "You can make additional deposits and transfers into your new account for 15 business days after your opening deposit. After this you can’t make any further deposits or transfers into your account.", so maybe it's the same?

AleisterCrowley
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Re: NS&I Announces Reduction in Interest Rates

#343787

Postby AleisterCrowley » September 29th, 2020, 8:26 pm

I've just moved my entire NS&I Direct ISA into a Paragon 2yr -hopefully that is allowed i.e. two transfers in a tax year. I'm pretty sure it is, and it's new subscriptions rather than opening new ISAs via transfer in

Gan020
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Re: NS&I Announces Reduction in Interest Rates

#343841

Postby Gan020 » September 30th, 2020, 7:54 am

Let's see what happens. NSandI instant access rate moving from 1.16% to 0.01%
Current best buys none of which have fallen since NSandI annoucement a week ago
5yr 1.60%
3yr 1.45%
2yr 1.36%
1yr 1.30%
Instant Access 0.8% (there are many options between 0.7% and 0.8%)

Clariman
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Re: NS&I Announces Reduction in Interest Rates

#343898

Postby Clariman » September 30th, 2020, 11:32 am

I had a call from NS&I this morning to confirm that it was definitely me who was closing my income bond and transferring all the money out. I said that I couldn't be the only one, to which they replied "it's causing carnage here" :?

mutantpoodle
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Re: NS&I Announces Reduction in Interest Rates

#343966

Postby mutantpoodle » September 30th, 2020, 2:34 pm

Clariman wrote:I had a call from NS&I this morning to confirm that it was definitely me who was closing my income bond and transferring all the money out. I said that I couldn't be the only one, to which they replied "it's causing carnage here" :?



so what do you do when THEY ring you
they always want security so ask you for your security details..
but how do you establish they are who they say they are??...most of the time they dont even give a full name let alone proof!!

'they' refers to any of the banks/B soc etc...so I not just having a go at NSand I

absolutezero
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Re: NS&I Announces Reduction in Interest Rates

#344154

Postby absolutezero » October 1st, 2020, 11:04 am

Clariman wrote:I had a call from NS&I this morning to confirm that it was definitely me who was closing my income bond and transferring all the money out. I said that I couldn't be the only one, to which they replied "it's causing carnage here" :?

They will be having to put their rates up again to meet their funding targets!

kempiejon
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Re: NS&I Announces Reduction in Interest Rates

#344164

Postby kempiejon » October 1st, 2020, 11:40 am

mutantpoodle wrote:so what do you do when THEY ring you
they always want security so ask you for your security details..
but how do you establish they are who they say they are??...most of the time they dont even give a full name let alone proof!!

'they' refers to any of the banks/B soc etc...so I not just having a go at NSand I



Quite, a few years ago HSBC phoned me on the number they have on file for me and asked me to identify myself to them. Of course I didn't I told them if they have questions they should secure message me or write to me.

Anyhow back to NS&I, I only have PBs and a Direct Saver I opened just a few weeks ago when they looked like a best buy rate. Seems my cash account picking is as stylish as my share picking, just after I buy the value falls over.


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