mbga9pgf Posted March 10, 2008 Share Posted March 10, 2008 Just got my annual letter from NS&I informing me that the ammount you can save in a cash isa for tax year 2008-09 will be £3600 (Great!) However, I was dumbstruck to find out this line in their literature: "We are pleased to announce that we are introducing a new interest rate rate guarantee for customers of our direct isa. From 6 Aril 2008 to 5 April 2009, we garantee that the interest rate paid on the NS&I Direct Isa will be 0.3% above the base rate". So, lets get this right, they are "Pleased to announce" they are fu*king us all dry by cutting their savings rate? Mother F*ckers!!!!! Ima going over to MSE to see where I can transfer my cash right now, anyone got any good suggestions for ISAs other than: 1) Dodgy Icelandic banks that dont garantee my cash? Quote Link to comment Share on other sites More sharing options...
AteMoose Posted March 10, 2008 Share Posted March 10, 2008 Just got my annual letter from NS&I informing me that the ammount you can save in a cash isa for tax year 2008-09 will be £3600 (Great!)However, I was dumbstruck to find out this line in their literature: "We are pleased to announce that we are introducing a new interest rate rate guarantee for customers of our direct isa. From 6 Aril 2008 to 5 April 2009, we garantee that the interest rate paid on the NS&I Direct Isa will be 0.3% above the base rate". So, lets get this right, they are "Pleased to announce" they are fu*king us all dry by cutting their savings rate? Mother F*ckers!!!!! Ima going over to MSE to see where I can transfer my cash right now, anyone got any good suggestions for ISAs other than: 1) Dodgy Icelandic banks that dont garantee my cash? how about an Icelandic bank that does garentee your cash under the FSA/British Government Scheme and the Icelandic scheme Quote Link to comment Share on other sites More sharing options...
Fortune Posted March 10, 2008 Share Posted March 10, 2008 You know there is always the yellow brick road? Quote Link to comment Share on other sites More sharing options...
AteMoose Posted March 10, 2008 Share Posted March 10, 2008 "We are pleased to announce that we are introducing a new interest rate rate guarantee for customers of our direct isa. From 6 Aril 2008 to 5 April 2009, we garantee that the interest rate paid on the NS&I Direct Isa will be 0.3% above the base rate". they garantee that it will be above 0.3 of the base rate, doesn't neccerraly mean there cutting the rate, but they can next year if they need the money.... Quote Link to comment Share on other sites More sharing options...
bob_apples Posted March 10, 2008 Share Posted March 10, 2008 Lloyds TSB are offering 6.5% fixed for a year if you can transfer in over £9000. http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp Quote Link to comment Share on other sites More sharing options...
mbga9pgf Posted March 10, 2008 Author Share Posted March 10, 2008 Lloyds TSB are offering 6.5% fixed for a year if you can transfer in over £9000. http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp Sweet Quote Link to comment Share on other sites More sharing options...
Maggot_with_halitosis Posted March 10, 2008 Share Posted March 10, 2008 Hasn't it been something like 0.5% above BoE base rate until now? I think the NS&I rate is still reasonably competitive. I wonder if this means that they foresee higher interest rates in the next financial year? Swings and roundabouts, I think. At least it's about the safest possible place to stick yer lucre. Caveat emptor and all that... Quote Link to comment Share on other sites More sharing options...
AteMoose Posted March 10, 2008 Share Posted March 10, 2008 One other thing be very careful when transferring out, some cash ISA providers don't allow you to transfer out when you have moved to them, or they charge an admin fee. Make sure you check before you transfer out and lock yourself to a provider that could drop interest rates further down the line... Quote Link to comment Share on other sites More sharing options...
thedebtisreal Posted March 10, 2008 Share Posted March 10, 2008 Yes, was annoyed with that one too. My suggestion is buy an inflation linked index bond. With RPI AT 4.1% and threatening to go higher, it might be better place to be. Quote Link to comment Share on other sites More sharing options...
mbga9pgf Posted March 10, 2008 Author Share Posted March 10, 2008 Yes, was annoyed with that one too.My suggestion is buy an inflation linked index bond. With RPI AT 4.1% and threatening to go higher, it might be better place to be. How safe are bonds with NS&I? Are they less liquid than ISAs, but more liquid than say, stocks and shares? What is the typical Rate of return on them? And the biggie, will I get stung as a top-rate taxpayer if I invest? Quote Link to comment Share on other sites More sharing options...
thedebtisreal Posted March 10, 2008 Share Posted March 10, 2008 How safe are bonds with NS&I? Are they less liquid than ISAs, but more liquid than say, stocks and shares?What is the typical Rate of return on them? And the biggie, will I get stung as a top-rate taxpayer if I invest? Tax Free, Government Backed. You can pull your money any time, but will not get any interest if pulled before year one. For more info --> http://www.nsandi.com/products/ilsc/index.jsp Quote Link to comment Share on other sites More sharing options...
ccc Posted March 10, 2008 Share Posted March 10, 2008 How safe are bonds with NS&I? Are they less liquid than ISAs, but more liquid than say, stocks and shares?What is the typical Rate of return on them? And the biggie, will I get stung as a top-rate taxpayer if I invest? Tax free. At the moment 1.35 AER above the RPI rate. Pretty decent. Also as long as you have them for a t least a year then you will get the index linking interest. So if you plab to have your money in these for 1 year + then they are a pretty safe stable option. One thing though they usually according ot heir own gumph do 'several' issues a year. They ahve only done one for over a year now. Let's hope they are not pulling them soon... Quote Link to comment Share on other sites More sharing options...
red Posted March 10, 2008 Share Posted March 10, 2008 Tax free. At the moment 1.35 AER above the RPI rate. Pretty decent. Also as long as you have them for a t least a year then you will get the index linking interest. So if you plab to have your money in these for 1 year + then they are a pretty safe stable option. One thing though they usually according ot heir own gumph do 'several' issues a year. They ahve only done one for over a year now. Let's hope they are not pulling them soon... These bonds still look good, IMHO. RPI isn't going down in a hurry... If the produce another 'issue' it might not be 1.35 above RPI, of course. Quote Link to comment Share on other sites More sharing options...
Muskoka Posted March 10, 2008 Share Posted March 10, 2008 I think Barclays are paying 6.5%, but I havent got round to checking that or T & C's yet Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted March 10, 2008 Share Posted March 10, 2008 Lloyds TSB are offering 6.5% fixed for a year if you can transfer in over £9000. http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp Sweet indeed. That means I can transfer my various ISA accounts with various banks. It's bloody stupid that some companies won't let you transfer in. Quote Link to comment Share on other sites More sharing options...
Lepista Posted March 10, 2008 Share Posted March 10, 2008 An NS&I ISA?? excuse me for being daft, but isn't the gains you get from NS&I tax-free anyway? What is the point in having your NS&I savings in an ISA? Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted March 10, 2008 Share Posted March 10, 2008 An NS&I ISA?? excuse me for being daft, but isn't the gains you get from NS&I tax-free anyway? What is the point in having your NS&I savings in an ISA? The reason I went with them is that they don't sneakily pull their rates down after the first year, so you can leave it there safely. The guarantee is reasonably competitive too. Quote Link to comment Share on other sites More sharing options...
benj Posted March 10, 2008 Share Posted March 10, 2008 How safe are bonds with NS&I? Are they less liquid than ISAs, but more liquid than say, stocks and shares? The answer to that question depends on what you mean by "liquid". You can cash them in at any time, but you will forego interest payments if you do. So in order to earn the headline rate, you have to leave them alone. That makes them illiquid, in my book. Much less liquid than the majority of stocks and shares, which can be sold in seconds at the prevailing market price. What is the typical Rate of return on them? Depends on the bond. Best go look on the website. And the biggie, will I get stung as a top-rate taxpayer if I invest? No, they are exceptionally good for higher-rate taxpayers because there is no tax liability on any gains. At all. The yield on the index-linked bond is currently such that you would need to find a ~10% pre-tax return to beat them, if I recall correctly. Quote Link to comment Share on other sites More sharing options...
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