Jump to content
House Price Crash Forum

Recommended Posts

  • Replies 90
  • Created
  • Last Reply

Top Posters In This Topic

For those of you that subscribed today, where were you holding the £15k that allowed instant debit card access (and at what rate?)

From an HSBC saver account offering 2%. I have money squirreled away in various accounts but that was the lowest paying with immediate access.

Edited by exiges
Link to post
Share on other sites

For those of you that subscribed today, where were you holding the £15k that allowed instant debit card access (and at what rate?)

Lloyds saver 3% before tax IIRC.

(yes, I know it will be destroyed by inflation and I should have bought gold or silver)

Link to post
Share on other sites

For those of you that subscribed today, where were you holding the £15k that allowed instant debit card access (and at what rate?)

Money in current accounts earning 0% waiting for the right kind of opportunities.

Link to post
Share on other sites

http://www.independent.co.uk/news/business/news/savers-rush-for-new-indexlinked-certificates-2283327.html

Savers rush for new index-linked certificates

Inflation-beating savings certificates went back on sale yesterday as the Government-owned NS&I relaunched its popular fixed-term tax-free scheme. Index-linked savings certificates were withdrawn from sale last July after being heavily subscribed by people desperately seeking decent savings rates.

The new five-year certificates pay RPI plus 0.5 per cent which, at the latest RPI figure, would give tax-free returns of 5.8 per cent. That is a considerably better return than the otherwise best-buy five-year bond from BM Savings, which pays 5.05 per cent, or 4.04 per cent after basic rate tax is deducted. The demand for the NS&I certificates was such that some 700,000 people had registered to be informed when they would return to sale.

The interest rate on the new certificates is less attractive than previous issues, which paid 1 per cent above RPI, but high street interest rates are so paltry sales are expected to be brisk. However, with the maximum allowed in a certificate being just £15,000, NS&I said it is likely to be months rather than weeks before the new issue runs out.

Jane Platt, the chief executive of NS&I, said: "Our aim is to keep savings certificates on sale for a sustained period of time and to enable as many savers as possible who wish to invest to do so." The government department has calculated it needs to rake in £14bn this financial year to meet the Treasury's 2011-12 £2bn net financing target.

In a further change to previous issues – presumably to dampen demand – the certificates will not be available at Post Offices: they can only be bought online or over the phone.

I wonder if not using the post office would of "dampened demand"?

Or maybe it is just easier for NSI to administer by phone or online only?

Link to post
Share on other sites

Course, as Housing is part of RPI, there is nothing to stop this going aggressively negative for a year or 2. How about -10% +0.5% if you keep it the full term..!?

Could sting.

That's not how they work... If RPI is negative you get the +0.50% AER but not the index-linking. I'm sure if RPI was -10%(!!) normal savings accounts would not have positive interest rates, thus these beating them again.

Inflation or deflation, for those in sterling, these things can't be beaten.

Link to post
Share on other sites

How come 250k Frank? Is that spread around the family on different issues?

Couple of issues of 3 and 5 a year = £60k.

They roll once on the same terms so you are effectively buying 6 and 10 year bonds so it's easy to rack it up over £300k, I missed a few (don't alays have the money!) and as I have some three years coming up to second maturity if there is no further issue my balance will start falling soon.

Link to post
Share on other sites

Anyone know if, once an account is opened, you can drip money into these up to £15k ?

Or can you only make one purchase per issue?

Answers appreciated!! :)

Yes you can 'drip' money into them. Until they stop accepting new money on the issue (which I imagine will be soon). They send out a certificate each time you buy more of an issue.

Sure makes calculating the interest more of a headache when you've multiple certificates of varying values from varying dates though.

Edited by christhpc
Link to post
Share on other sites

Yes you can 'drip' money into them. Until they stop accepting new money on the issue (which I imagine will be soon). They send out a certificate each time you buy more of an issue.

Sure makes calculating the interest more of a headache when you've multiple certificates of varying values from varying dates though.

Thanks Christhpc, very useful

Edited by Diet Cola Addict
Link to post
Share on other sites

RPI guaranteed, tax free, plus guaranteed to be safe has got to be better than what you get in other savings accounts....only need to keep it for a year.

I am sure the banks and building societies will lose some of their deposits because of this....will they now start giving their loyal savers a better deal because of the new competition?....I wonder. ;)

NR recently launched a 3.01% online instant access. Previous NR best was 2.5%.

Can't be a coincidence.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.