NS&I - Another savings hit

We have a government professing concern about the mounting level of personal debt and the woeful level of individual savings. Then we have the national savings bank (NS&I), which is backed by the Treasury, announcing that their savings interest rates are being slashed and the Premium Bonds payments are being reduced.

There has been no cut in the bank interest rate to necessitate this - in fact, the last interest rate movement was upwards.

What incentive is there to save? Why not just spunk your savings and live off credit?
 
We have a government professing concern about the mounting level of personal debt and the woeful level of individual savings. Then we have the national savings bank (NS&I), which is backed by the Treasury, announcing that their savings interest rates are being slashed and the Premium Bonds payments are being reduced.

There has been no cut in the bank interest rate to necessitate this - in fact, the last interest rate movement was upwards.

What incentive is there to save? Why not just spunk your savings and live off credit?
Self respect.
 
Self respect.
They're going to have to do a little better than that to make saving attractive. It will take more than a pat on the back and a 'jolly good show' to encourage people to save when the value of their hard-earned savings will diminish against the rate of inflation.
 
They're going to have to do a little better than that to make saving attractive. It will take more than a pat on the back and a 'jolly good show' to encourage people to save when the value of their hard-earned savings will diminish against the rate of inflation.
You don't understand self respect.
Plus my savings for the most part are in my pension pot which is doing very well.
 

Fake Sheikh

War Hero
0.45% on Premium Bonds & National Savings.
Soon you will have to pay NS&I.
That said the only way to save £85k+ & it be 100% safe..
 

Daxx

MIA
Book Reviewer
I don't have many bonds, but I do enjoy getting the message I have won. I still await the visit from Agent Million.
 
Not just NS&I. I got an email from my bank last month saying the interest rate on my savings account was dropping from 13th of this month. I assumed this was to preempt a cut in the interest rates by the BoE. But, no, BoE kept them the same however my bank is still dropping the interest rate.
 

endure

GCM
TSB have just dropped their Classic Plus interest from 3% to 1.5%
 
They're going to have to do a little better than that to make saving attractive. It will take more than a pat on the back and a 'jolly good show' to encourage people to save when the value of their hard-earned savings will diminish against the rate of inflation.
When I was young I didn't have enough left for saving and didn't think about it tbh.
Now I am going on 61 I earn more than I need to live but now I do have a strong incentive, which is not to pop my clogs from hunger etc. when I eventually have to leave my job because of age.
I don't see how the interest levels could determine if a person wants to save or not - only the method of saving they choose (risky or otherwise).
The news about premium bonds doesn't make me happy but I still think they're a brilliant idea and have been quite a nice option over the past few years.
 

endure

GCM
When I was young I didn't have enough left for saving and didn't think about it tbh.
The two things my mum always drummed into me were be polite and save 10 of everything you earn. Good advice for anybody.
 
You don't understand self respect.
Plus my savings for the most part are in my pension pot which is doing very well.
Voluntarily putting savings into an account where the capital sum is diminishing would demonstrate something considerably less than self-respect. If the savings account is managed by the Treasury, then it demonstrates a certain contempt by the government for the small saver that they are seeking to attract.

Yes, there are all kinds of 'investment' schemes, some better than others. This thread is not about 'investing'. Some people who want to make use of 'investment' schemes or for the people who want to blow off about how well they are doing. (Incidentally, hasn't the Bitcoin thread gone quiet recently?) This thread is specifically about 'saving'.

Investments, where the potential rewards and risks are greater, are not suitable for all people, particularly the small saver.

All small savers want is a safe home for their money and a rate of interest sufficient to ensure that they do not actually lose out by saving. For generations this was a reasonable expectation. What has changed?
 
All small savers want is a safe home for their money and a rate of interest sufficient to ensure that they do not lose out by saving. For generations this was a reasonable expectation. What has changed?
Devaluation under Wilson followed by incredibly high interest rates under Thatcher, and then something major happened in 2008 which you probably didn't notice.
 

TheAssassin

War Hero
When I was a student (90s), the grant was about to be discontinued and the student loans were offered. The inflation rate for the loans were around 3.5% pa, but the Post Office account (with the one month notice for withdrawals) was offering 6% interest (as opposed to the 0.5% ordinary account). As wasn't in need of loans as my grant actually covered what I needed, I could actually put a loan into 6% account and actually make money from it. Someone from my course who then went elsewhere told me they were using their loans and putting them into (then newly introduced) ISAs, which at the time were giving a 20% return after three years (which is basically what 6% pa is)

The last time had access to a 6% or thereabouts , annual return on a bank account was ten years ago, and they only offered that rate for a year. There are plenty of us who can and want to save, it's an actual disgrace we can't be offered anything for being responsible.
 
Devaluation under Wilson followed by incredibly high interest rates under Thatcher, and then something major happened in 2008 which you probably didn't notice.
Mate, is it ever possible for you to post without being snippy?

What I have managed to notice is that the crash of 2008 was twelve years ago and the people least responsible for causing it are still the ones who are paying the price.
 
Mate, is it ever possible for you to post without being snippy?

What I have managed to notice is that the crash of 2008 was twelve years ago and the people least responsible for causing it are still the ones who are paying the price.
That is always the case, and there is magic fix.
BTW I mostly post politely but you do seem to have a problem with the fact that life is messy, imperfect and unfair.
Such is human nature.
 
Not just NS&I. I got an email from my bank last month saying the interest rate on my savings account was dropping from 13th of this month. I assumed this was to preempt a cut in the interest rates by the BoE. But, no, BoE kept them the same however my bank is still dropping the interest rate.
Yes, you're quite right, but banks are private corporate institutions with their eye on the main chance. I'd like to say that their first duty is towards their shareholders. However, anyone who has had anything to do with bank stocks in recent years will know that they have performed very poorly in most cases. Dividends have been woeful. This has not been reflected in the salary and bonus packages enjoyed by their senior officers.

In the case of NS&I, they are, to all intents and purposes, a governmental institution. A government that seeks to encourage saving and to address the level of personal debt and credit nationally.
 
SWMBO is driving me nuts.
A sizeable slice of her 6 figure Tax Free retirement lump from 4 years back is sitting in the Clydesdale in a 40 day account effectively losing in real terms over/around £350.00 annum and that includes the miserable .85% interest and she refuses to take action.
Even our manager said to me to tell her to do something with it or spend it.
WTF do I know? Crunching numbers in a variety of arenas was only my bloody job for 30 years.
 
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SWMBO is driving me nuts.
A sizeable slice of her 6 figure Tax Free retirement lump from 4 years back is sitting in the Clydesdale in a 40 day account effectively losing in real terms over/around £350.00 annum and that includes the miserable .85% interest and she refuses to take action.
Even our manager said to me tell her to do something with it or spend it.
WTF do I know? Crunching numbers in a variety of arenas was only my bloody job for 30 years.
There will be many thousands like her, unfortunately. It is something that the enables the banks to pull such strokes and to ignore the normal rules of competition.
 
I have had savings account with the Leeds Building society for about 5 years.

Started off at 5%, providing i deposited at least £250 per month, and could make 1 penalty free withdrawal per year - any more and I lost that years interest - paid annually in September, which wasn't an issue as i wanted to save, not spend.

After about 18 months the interest rate was dropped to 2.5%, with the same restrictions. Last year it was dropped to 1%. Absolutely nothing I could do about it.

It is now sat in Premium bonds - I can't win!
 
We are getting bugger all in interest, basics on any accounts
We have ploughed 60k into premium bonds, 50 (max) in hers 10 in mine
With all the numbers running consecutively we are receiving about £100 on hers, and usually 25 in mine
We've had a couple of £500 prizes some months, there are no wins it all balances out at £100 ish a month/ 1200 a year.. With the chance of getting the bigly prize ...obviously no guarantee this is always going to happen, but works out about 5%
 

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