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Ns&i For Pensioners, Effect On Savings Rates

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Ok so apparently FLS has been extended, whatever that means. But as pensioners can whack a load of cash into the new NS&I bonds, how will this affect other rates?

Will it just be a move from annuities and private funds into government bonds, hitting pension providers? Or could we see reduced funding in at least some of the smaller lenders, upping rates?

MSE email I just got suspects a 2.8% one year, and 4% three year. This is on par with p2p platforms. Could we see these rates rise as older savers emigrate?

Or is it just another vote buying giveaway from the young to the old that will not have any "obvious" effects?

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MSE email I just got suspects a 2.8% one year, and 4% three year. This is on par with p2p platforms. Could we see these rates rise as older savers emigrate?

Or is it just another vote buying giveaway from the young to the old that will not have any "obvious" effects?

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It has the effect of winding me up. Winter fuel allowance + free bus/rail/tram and tube, + locked in hpi.

Hopefully many have tapped into their savings and will look to sell their houses, at lower prices, in months ahead. Low savings rates wouldn't bother me if house prices were falling, but they triggered another run of massive hpi.

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Ok so apparently FLS has been extended, whatever that means. But as pensioners can whack a load of cash into the new NS&I bonds, how will this affect other rates?

Will it just be a move from annuities and private funds into government bonds, hitting pension providers? Or could we see reduced funding in at least some of the smaller lenders, upping rates?

MSE email I just got suspects a 2.8% one year, and 4% three year. This is on par with p2p platforms. Could we see these rates rise as older savers emigrate?

Or is it just another vote buying giveaway from the young to the old that will not have any "obvious" effects?

P2P is going to be available for NISA's come April and it has just been announced that P2P loses will be offsettable against gains on tax returns so I would imagine a lot of money flowing into P2P very soon, as announced in the Autumn Statement;

http://citywire.co.uk/money/peer-to-peer-lending-boost-investors-allowed-to-offset-loan-losses/a787588

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P2P is going to be available for NISA's come April and it has just been announced that P2P loses will be offsettable against gains on tax returns so I would imagine a lot of money flowing into P2P very soon, as announced in the Autumn Statement;

http://citywire.co.uk/money/peer-to-peer-lending-boost-investors-allowed-to-offset-loan-losses/a787588

P2P lending is deflationary. It's like TPTB are encouraging it (or perhaps they don't understand it).

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P2P is going to be available for NISA's come April and it has just been announced that P2P loses will be offsettable against gains on tax returns so I would imagine a lot of money flowing into P2P very soon, as announced in the Autumn Statement;

Isn't that exactly the same as losses on (most) equities, debentures, and other traditional investments being offsettable against tax?

I expect this'll be limited to regulated schemes, rather than allowing you and me each to lend each other £10k then write our respective loans off as a tax loss.

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No, I don't think that they do. Still something to look into and possible take advantage of!

I thought the same until I dug deeper and found several P2P lenders are advertising that their funds are backed by residential property loans or that they only lend to people investing in BTL. This is supposed to reassure people, because you cannae go wrong with brix n mortar...

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Lets all hope for a nice cold snap, that should trickle some of the wealth down.

Do you really want a lots of mothers, fathers and grand parents to die? Are you that jealous?

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Isn't that exactly the same as losses on (most) equities, debentures, and other traditional investments being offsettable against tax?

I expect this'll be limited to regulated schemes, rather than allowing you and me each to lend each other £10k then write our respective loans off as a tax loss.

Exactly, but they are going to extend it to P2P lending, presumably through the major companies that have the P2P platforms (Funding Circle, Zopa, Rate Setter, Wellesley etc).

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I thought the same until I dug deeper and found several P2P lenders are advertising that their funds are backed by residential property loans or that they only lend to people investing in BTL. This is supposed to reassure people, because you cannae go wrong with brix n mortar...

Yes that turning me off too but I noticed that with Funding Circle you can pick which businesses you want to lend money to. I might try it with a couple of k.

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