NS&I Index-linked withdrawn.
NS&I Index-linked withdrawn.
Author
Discussion

nomisesor

Original Poster:

983 posts

203 months

Wednesday 7th September 2011
quotequote all
Too good to last! Our bank (and many others) probably not pleased to have mortgage withdrawals @ 1.49% to arbitrage @ 5.5% tax-free.

cuprabob

16,959 posts

230 months

Wednesday 7th September 2011
quotequote all
sadly NS&I are only allowed to hold a small percentage of the savings market and due to their popularity that threshold seems to have been reached. Either that or the poor bankers have been moaning again

Mattt

16,664 posts

234 months

Wednesday 7th September 2011
quotequote all
Looks like I got in at the right time then! My money was taken out my account yesterday.

nomisesor

Original Poster:

983 posts

203 months

Wednesday 7th September 2011
quotequote all
cuprabob said:
sadly NS&I are only allowed to hold a small percentage of the savings market and due to their popularity that threshold seems to have been reached. Either that or the poor bankers have been moaning again
Indeed - from NS&I's Q1 report:

"To meet the target of £2 billion Net Financing NS&I will need to deliver inflows of some £14 billion and it has designed its 2011-12 sales plan to enable Savings Certificates to make up a significant part of this, while still allowing savers to invest and reinvest in its other products. NS&I expects Savings Certificates to remain on sale for a sustained period."

They said that in the 4 months for which this issue was on sale they had about 500k transactions. There is a problem if they hoover up too much of the savings market at the same time as asking the banks to re-capitalise and to lend. However it seems that they are allowed to have about 8% of the total savings deposit market and as many people (who can do so) respond to recession by saving more, they were able to up their take in line with the general increase in savings. It would be interesting to know how the rate of take up of the certificates went over the 4 months as earlier they were saying that it had been surprisingly slow and there was quite a lot of coverage in the press recently, highlighting the returns from these vs other savings and equities now and over time.

greygoose

9,083 posts

211 months

Thursday 8th September 2011
quotequote all
Mattt said:
Looks like I got in at the right time then! My money was taken out my account yesterday.
Mine too, what a relief.