Monday, Jul 19, 2010
NS&I index linked savings too popular
Telegraph: NS&I withdraws index-linked savings certificates
NS&I has announced that its Savings Certificates (both fixed-interest savings certificates and index-linked savings certificates, also known as inflation-beating savings) have been withdrawn from general sale.
It is also reducing the interest rates paid on its Direct Saver and Income Bonds by 0.25 of a percentage point with immediate effect. Sales volumes in recent months across all three products have far exceeded those either anticipated or required by NS&I, it said.
Posted by siskin @ 09:52 AM (1847 views) Add Comment
16 Comments
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1. Wageslavex14 said...
Gutted. I applied for the most recent issue 3 weeks ago, but found out while on holiday that, due to using the wrong application number (from previous certificates) that my application was refused. I was quite suspicious at this point, as I have a screengrab of the application which shows the correct number. It's now too late to do anything about it, though.
Now I'm resigned to making a real loss of about 3-4% on my savings this year.
2. mark wadsworth said...
B*gger. That's me [£ embarrasingly large amount] worse off each month. Cue Smugdog to tell say that it serves me right for not doing my best to prop up house prices.
3. mrflibble said...
Another escape tunnel shut down...
I thought the ConDems were looking out for savers anyway?
Did a trawl of savings accounts this morning and I see the best instant access account is 2.80% - totally ridiculous.
4. Ddhk said...
This a barefaced ploy to prop up the incompetent banking industry by removing competition in the savings market. It stinks.
5. mark wadsworth said...
@ Ddhk, to be fair to the government, they are not forcing anybody to accept these derisory rates, they are just paying as little as they can get away with, which taxpayers generally ought to be applauding. Supply and demand and all that.
6. Notyethomeless said...
------- daaaaaaaaaammmmnnnnn ------
Not constructive comment, but that's how I feel.
recapcha: harsh Duzer (?)
7. a saver said...
There are a few better-paying accounts coming up now eg good offers on fixed-term ISAs from NRock, BMidshires, Dunf and Derbyshire (about 4%). However, these rates could look a bit dismal in a few years time.
8. Exiges said...
-- "There are a few better-paying accounts coming up now eg good offers on fixed-term ISAs from NRock, BMidshires, Dunf and Derbyshire (about 4%). However, these rates could look a bit dismal in a few years time."
"better" ? Better than RPI tax free ? I doubt it.
9. general congreve said...
So, no index-linked savings accounts available, no banks paying interest rates on savings that keep up with inflation, what to do?
GOT GOLD?
10. nickb said...
Suppose that debt deflationists are right. We'd then be in for rocky times, presumably with many banks going under. Would NS&I be safe at least, or is that naive?
Nick
11. Wickedw said...
The uk is now a joke and taking the p##s, I love watching bad debt being washed away whilst any previous effort saved is punished, don't you?
12. a saver said...
Exiges@8, What I meant was better rates than are usually offered for ISAs - as index-linked savings are no longer available.
I recall the banks were in trouble for ripping us off on ISA rates so maybe they've taken notice.
Am hoping that there will be some better non-ISA savings rates on offer come September.
13. Stevenl said...
The Ruffer Total Return fund is well invested in index linked sterling and dollar bonds, also I'm buying dividend paying corporates like Vodafone.
If you save in banks you are just lending cheap money to the home-owner-ists.
14. tenyearstogetmymoneyback said...
Looking on the bright side, as Mark W said " Supply and demand and all that"
I think it was last year that NS&I reduced their ISA rate to a derisory 1.25%. They soon raised it again to 2.5%.
Maybe this explains where all the Government funding has been coming from (although of course they will pay for it later).
Unless they start the QE presses again they will soon find that they need to offer some decent rates to get some more money in.
There must a rate below which people just don't bother with savings accounts.
15. clockslinger said...
Oh, Mr Flibble @ 3, I can't believe you have such little faith in the Eaton Plutocracy. Surely you know they are going to make it right and it is only because of Gordon Brown that they can't look after savers or get house prices down. They'd never betray your trust!
16. urbanbear said...
@general congreve
Yes, I got Gold & Silver, and beat the CPI and RPI, each year :)
As repeated pointed out by Nadeem_Walayat, on http://www.marketoracle.co.uk/ , we have Stagflation, not mere deflation, debt may be deflating, but their is a real underlying CPI and higher RPI inflationary trend. Thanks to the fraud of a 0.5% BOE rate, the bankrupt banks are making at least 2% pure profit off savers and borrowers, even after paying short term credit costs, so you are a fool if you leave any significant amount of money with banks; better to put most of your money in investments and proper hedges, like precious metals and commodities.