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£25 quid. Still tax free
I’m getting fed up with premium bonds.
- Thread starter Mottie
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sodthisforfun
They were going to do this before, but put it on hold coz of covid.
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dontbelieveawordofit
if you have £25 in bonds statistically you’d have to wait 82,000 years to win the jackpot.
but if you have £50000 in bonds statistically you should win 2x£25 / month.
but if you have £50000 in bonds statistically you should win 2x£25 / month.
Are you implying that elderly Labour voters got what they voted for, penury.
Well, I was thinking of cashing them in and putting the cash elsewhere but to be honest, rates are pretty poor. 1% on average for instant access. I’ve just closed our TSB accounts (were paying 5% on first £3K, then went down to 4%, then 1.5% on first £1.5k and from next month going down to .....0% so cashed those in and just bought another £5k of bonds each for me and Mrs Mottie. Not elegible until the November draw but can’t be any worse than 0% - at least there’s a small chance of a win and they are instant access.
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EddieM
Most of those accounts are for a regular saver account over 1 year, so you can save a maximum of say £250 at a 3% AER. This doesn't mean you get 3% of £3000. You get 3% on £250, 11/12ths of 3% on the next £250, 5/6ths of 3% on the next £250 etc. All in all it still amount to a pretty paltry amount. After the year is up, the account reverts to standard interest rates, typically 0-0.1% or £0 to £3 a year, whoop!
When we were saving like mad for a house around 1980ish, we would get a huge amount of interest each month. I remember taking my book up the Abbey National to have my interest added on each month or so. I am sure it was £30 or £40 or more each month. Mind you, I bet those paying mortgages felt it too!
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We worked abroad in the early 90s, sold the house and bunged the proceeds in a B&B account in the IOM, tax free 16%, by the time we got home in the middle of the recession I think it had dropped to single figures
Savers could then be charged by banks to hold their money
Herald the longest queues, you have ever seen.
It has been reported that the BoE is opposed to negative interest rates.
They are rather rare (outside Switzerland)
"BoE deputy governor opposes negative interest rates
Dave Ramsden says current benchmark is the ‘effective lower bound’
https://www.ft.com/content/01dee677-27cb-4371-a93f-1f9a53063a13
One of the Bank of England’s deputy governors has voiced strong opposition to setting negative interest rates, saying he thought the benchmark could not be lowered any further without counter-productive results.
Speaking in a recorded interview with the Society of Professional Economists, Dave Ramsden, deputy governor for markets and banking, said on Monday that although the central bank had negative rates in its toolbox, he did not think the policy should be used. “I see the effective lower bound [for interest rates] still at 0.1 per cent which is where Bank rate is at present. It is useful to stress that,” Sir Dave said.
His views on negative rates, which were not known specifically, demonstrate the strong opposition among many of the nine monetary policy committee members to push interest rates below zero for fear that the action would undermine the health of the banking system and not provide any economic stimulus."
They are rather rare (outside Switzerland)
"BoE deputy governor opposes negative interest rates
Dave Ramsden says current benchmark is the ‘effective lower bound’
https://www.ft.com/content/01dee677-27cb-4371-a93f-1f9a53063a13
One of the Bank of England’s deputy governors has voiced strong opposition to setting negative interest rates, saying he thought the benchmark could not be lowered any further without counter-productive results.
Speaking in a recorded interview with the Society of Professional Economists, Dave Ramsden, deputy governor for markets and banking, said on Monday that although the central bank had negative rates in its toolbox, he did not think the policy should be used. “I see the effective lower bound [for interest rates] still at 0.1 per cent which is where Bank rate is at present. It is useful to stress that,” Sir Dave said.
His views on negative rates, which were not known specifically, demonstrate the strong opposition among many of the nine monetary policy committee members to push interest rates below zero for fear that the action would undermine the health of the banking system and not provide any economic stimulus."
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EddieM
There is talk that the BOE may reduce the interest rate to 0% or even -ve%.
Savers could then be charged by banks to hold their money
If the BoE were to set negative interest rates, then it's not a forgone conclusion that consumers will be charged by the banks (it is of course possible)
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