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NS&I announces unprecedentedly large rate cuts on 24 Nov. A devastating blow for savers


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NS&I announces unprecedentedly large rate cuts on 24 Nov. A devastating blow for savers

Currently best buy across the board. -Income Bonds drop from 1.15% to 0.01% -

Direct Saver drop from 1% to 0.15%

-Investment account from 0.8 % to 0.01

ISA & Junior ISA similar

A devastating blow for savers

https://twitter.com/MartinSLewis/status/1307975786905862145

https://twitter.com/MartinSLewis

 

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The fact that investors are still willing to lend money to the UK government at negative rates just shows how dead the economy is that they can't find better projects to invest in elsewhere.

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Just now, rantnrave said:

Entered an online queue multiple times recently to login to our new NS&I saver, so this news, while disappointing, is no surprise. Having govt rates topping the comparison tables must have been really crowding out the banks.

Still better to keep cash with the government though, we all saw the bail-in plans for Cyprus.

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36 minutes ago, toreveal said:

Premium bonds less affected, the prize fund will drop from 1.4% to 1% in December

Already got rid of £25k of PBs earlier this year to put into some shiny stuff. Might have to get shot of a bit more now.

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7 minutes ago, Huggy said:

Already got rid of £25k of PBs earlier this year to put into some shiny stuff. Might have to get shot of a bit more now.

If I was investing long term I'd be doing this but I just wanted somewhere to put my deposit that hopefully I'll be using end of this year beginning of next, I've missed the big climb in gold prices now and if it starts to fluctuate over the next 6 months and dips just as I need it to buy a place (hopefully at a crashed price!) then I'll be kicking myself.

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11 minutes ago, HovelinHove said:

Brings them into line with everyone else. Still have a chance at 1 million prize. Still the safest by far. Short of buying treasuries, about the safest bet around. 

The more that invest into PB the worst the chances get....nowhere to go for instant access savers.......very few and reducing numbers of fixed term savings......choices, spend it or spend less or spend better and create own return.

.....another choice:

"An investor may get back less than the amount invested. Information on past performance, where given, is not necessarily a guide to future performance."

;)

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29 minutes ago, debtlessmanc said:

19.9bn has flowed in between april and june as worker with jobs saved money.

Meanwhile the BoE has been printing, meaning there is a lot of offer for cash. 

Supply and demand at its finest. When will people understand that printing money devalues any sort of work.

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1 hour ago, Freki said:

Meanwhile the BoE has been printing, meaning there is a lot of offer for cash. 

Supply and demand at its finest. When will people understand that printing money devalues any sort of work.

Because it simply isn't true. Printing money kept industrial capitalism from destroying itself in 2008.

Printing money is defraying the worst excesses of the current crisis...

...which is why Richey Rish is going to carry on doing it!

https://www.msn.com/en-gb/money/news/rishi-sunak-to-extend-emergency-covid-19-business-loan-schemes/ar-BB19g8zd

depositphotos_9105739-stock-photo-pound-

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I was expecting this - NS&I is usually quite slow to reprice and can sometimes be the best buy both in rates as well as security.

It is not just that this rate has been lowered, but the rate of others will be able to drop now - a lot of them, especially the fixed term deposit markets, will be able to drop their prices because they are no longer in competition with NS&I. Expect others to drop their prices. I wouldn't be surprised if the banks had been lobbying about how attractive the NS&I rate was compared to what they could offer.

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1 hour ago, zugzwang said:

Because it simply isn't true. Printing money kept industrial capitalism from destroying itself in 2008.

Printing money is defraying the worst excesses of the current crisis...

...which is why Richey Rish is going to carry on doing it!

https://www.msn.com/en-gb/money/news/rishi-sunak-to-extend-emergency-covid-19-business-loan-schemes/ar-BB19g8zd

 

There are a lot of people out there who simply cannot comprehend the value that printing money can have in times of crisis, but love the simple messages and answers offered by certain armchair monetarists.

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3 minutes ago, TheCountOfNowhere said:

I suspect a UK bank is in serious trouble.

 

Anyone with savings and half a brain would have moved it into NSandI recently.

Be afraid.

And now we're satisfied with poor rates to keep our money safe.  Look where the've got us...Will leave what's there for now as it might be required quickly.

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34 minutes ago, Ah-so said:

There are a lot of people out there who simply cannot comprehend the value that printing money can have in times of crisis, but love the simple messages and answers offered by certain armchair monetarists.

Please educate me. The business model of banks used to fight for the depositor money then lending it at a higher rate and pocket the difference. Now the banks have little need of people's money and have direct access to the BoE to refinance. I know there are some ratios that are needed for a bank to keep functioning.

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39 minutes ago, Freki said:

Please educate me. The business model of banks used to fight for the depositor money then lending it at a higher rate and pocket the difference. Now the banks have little need of people's money and have direct access to the BoE to refinance. I know there are some ratios that are needed for a bank to keep functioning.

Banks are orginators of credit financing not intermediaries between savers and borrowers. Loans and deposits are created simultaneously on opposite sides of the balance sheet.

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1 hour ago, Ah-so said:

There are a lot of people out there who simply cannot comprehend the value that printing money can have in times of crisis, but love the simple messages and answers offered by certain armchair monetarists.

Yes, the household finances analogy. A perennial favourite of the Trumpian dunces on HPC - careful always to avoid any mention of the Combover Crybaby's trillion dollar deficits.

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1 hour ago, Buffer Bear said:

And now we're satisfied with poor rates to keep our money safe.  Look where the've got us...Will leave what's there for now as it might be required quickly.

Look at it this way, if asking prices start tumbling next month your house price money is gaining in value, as you say, now is the time to have quick access to it. 

Watch for uk property lion current asking price index in early October 

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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