Is this really true??
I rarely miss an opportunity to have a grumble to my BS about their
savings interest rates when I message them but this part of their reply
was a new one on me.
"With interest rates we are given a maximum and minimum amount we can
provide for certain types of accounts, this isn't determined by us but
rather the HMRC "
Anyone else come across this?
No it is related to a personal, so called loyalty account that pays
0.75% to members with over 15 years standing with nationwide.
My main grumble was that they cap it at 50k and I need short term, safe
easy access home for house sale money so I don't lose out to inflation.
the best they could offer on the balance over 50k was 0.1% !!!
On Fri, 10 Feb 2017 11:55:04 +0000, Bob Minchin wrote:
Try NS&I - no limit on what you can invest (AIR) and whilst the interest
is not stunningly high it is very safe way of saving as there is no
'protection cap' as there is with banks/building societies. It is run and
owned by Government hence the lack of protection cap as it is not a bank
or BS. Its ideal for a short-stop house sale/purchase scenario. You'll
still lose out to inflation (both RPI and house prce) but you will
mitigate some of the loss.
Re the HMRC limit I'd go back to Nationwide and ask them for the evidence
to back up their claim. That is, if you can be bothered.
On Friday, 10 February 2017 11:55:11 UTC, Bob Minchin wrote:
A problem for all of us that aren't poverty stricken chavs.
I downsized houses thirteen years ago from a five bedroom house and fifty acres to a twoand a half with 2 acres..
I got solar panels and a heritage car.
I suppose the other thing is buy to let housing.
But lots of hassle I fancy.
I was informed a month ago by the TSB that their interest rate on my
savings accounts with fall to 0.05%. Since when I have been looking for
an alternative place to lodge a good sum of money. Today (via the MS) I
found an account at www.westbrom.co.uk which pays 1.05% on an account
with £1,000 to £250,000, with instant withdrawal and online banking.
Their Bonus Saver 2.
You transfer to and from your normal bank account, which is essential.
Talking of which, is their any point at all in a pensioner having an
Not necessarily. You now get a personal savings allowance of £1000 a
year tax free (up to £5000 if your income is less than £16,000). At 1%
interest you'ld need £100,000 of savings to pay tax on isavings
It's still £500 a year if you're a high rate tax payer, so ISAs are
only worth it if you are very wealthy and then I expect you would be
able to find much better investments!
It's always worth noting that *if* you are lucky enough to have >£10k
ish to save, premium bonds will return around 1% tax free over
reasonable periods. I did the calculations out of interest and once you
are in the region of £30k, you can expect regular £25 prizes tending to
average to the design yield (little over 1% ATM). £10k will work too,
but you may have to ride it for a year to get the average. The full £50k
should see average returns over a couple of months.
And you get the extra fun of "maybe £1mil"
This is a bit of a fallacy.
Whilst the average should work out to be the stated figure, you have to
take all the high value prizes out of the prize kitty first and then
distribute the remainder amongst the the remaining drawn numbers.
I've had £30k in since 2009 and not got near the published figures.
It's sound calculation (happy to share my Google Sheet with you if you
Based on the May 2016 prize distribution, the £25 prizes form 83.89% of
the total prize pot so everything hinges on them and they are the most
You *should* be taking 1-2 £25 prizes per month (May 2016) - an average
of £325 per annum. What were you getting last year?
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