6.2% - one year bond!

[chaser]

I must have read the yearly paid interest wrong, I opened 3, one for me one for the wife and one joint all at £85k each. But went for the monthly payment at 5.08% this way if the interest rate falls I can pull the money out and move it else where. I want lots of monthly paid interest accounts. Each and joint.
I am now looking at what to do with the Santander ISA’s at 4.25% and the savings in the YBS at 3.5%.
I just started getting my Private pensions (kicked in at 65) so I’ve been looking for monthly incomes leading up to State pensions next year.

Right I must point out this has nothing whatsoever to do with me and you can tell me so if you want.
You are apparently getting two pensions which should be enough to keep you , what are you planning on doing with this quarter of a million in numbers on paper at approaching 70.
Why are you worried about the odd percent or two.

 

[Minxy]

I am now looking at what to do with the Santander ISA’s at 4.25%

Virgin have a cash ISA at 5.8% so if you can transfer penalty free that's one to look at, unfortunately I would lose 2 month's interest if I did so thus it doesn't make sense to do it at present. Is this where you saw the 5.8% rate which you thought was the EA saver?

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[our poppy 5]

I think as you say most expect interest rates to fall. I'm looking at doing the ns and I bond with most of our cash savings leaving enough in easy access for a years spending plus a healthy reserve. I reckon it better keeping the majority in the highest interest and spending the rest rather than drawing monthly interest at the end of the year we will have more money. I think there's a psychological aversion to spending the capital rather than drawing interest but it makes no sense!

My retirement plan was to draw £6k a month for up to 30 years from my capital, it’s tax free, it’s just cash savings, but this was when interest rates were abysmal.
Add to that 2 state pensions, mine next year and my pretty flamingo’s gets hers, then our private pensions paying now, on top of that. We were sitting well.
But now with interest rates so high if we get 5%+ we can draw that level monthly and keep all the capital untouched and even increase it.
My worry is I’m gonna pop it loaded!
I wanted to pop it owing the national debt!
I can’t wait until July next year, that bus pass will be worn out in a week! Pretty flamingo uses hers and I have to pay… grrrrr… she thinks I’m mad, pretty flamingo says we have 3 cars and a motorhome, why do you want to catch a bus you’re nuts… I think she’s right…

 

[The Wino]

My retirement plan was to draw £6k a month for up to 30 years from my capital, it’s tax free, it’s just cash savings, but this was when interest rates were abysmal.
Add to that 2 state pensions, mine next year and my pretty flamingo’s gets hers, then our private pensions paying now, on top of that. We were sitting well.
But now with interest rates so high if we get 5%+ we can draw that level monthly and keep all the capital untouched and even increase it.
My worry is I’m gonna pop it loaded!
I wanted to pop it owing the national debt!
I can’t wait until July next year, that bus pass will be worn out in a week! Pretty flamingo uses hers and I have to pay… grrrrr… she thinks I’m mad, pretty flamingo says we have 3 cars and a motorhome, why do you want to catch a bus you’re nuts… I think she’s right

We're planning a retirement from savings as we have no occupational pensions. My point was that if you have 3 lots of £85k at 5.08% and draw monthly from interest rather than stick say £235k into a 6.2% bond and draw from the rest that could still get interest at the end of a year you will have about £2500 less in the bank plus whatever interest you get on the £50k that you're drawing from.It doesn't matter if you call it drawing interest and leaving capital or not it's just a mental division of your funds!
We've planned ours out to the age of 100 and aim to draw on savings then ISAs then see where we end up. As you say one concern is spending it rather than dying rich

 

[our poppy 5]

Virgin have a cash ISA at 5.8% so if you can transfer penalty free that's one to look at, unfortunately I would lose 2 month's interest if I did so thus it doesn't make sense to do it at present. Is this where you saw the 5.8% rate which you thought was the EA saver?

Savings Range | Virgin Money UK

Credit cards, Mortgages, Savings, ISAs, Investments and Insurance – Our quest to make banking better starts here

uk.virginmoney.com

I’ve looked at that many interest rates over the last few weeks I don’t have a clue where I saw it. But I keep looking. It’s nice for our hard earned to make a better interest rate, I bought my first house at 18 in 1976, a few years later the interest rate was crippling, I’m sure it hit over 18%. So mortgages today at 6% is still not that high compared to what we had to pay, and there was no tax credits, no benefits, no help at all.

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[our poppy 5]

We're planning a retirement from savings as we have no occupational pensions. My point was that if you have 3 lots of £85k at 5.08% and draw monthly from interest rather than stick say £235k into a 6.2% bond and draw from the rest that could still get interest at the end of a year you will have about £2500 less in the bank plus whatever interest you get on the £50k that you're drawing from.It doesn't matter if you call it drawing interest and leaving capital or not it's just a mental division of your funds!
We've planned ours out to the age of 100 and aim to draw on savings then ISAs then see where we end up. As you say one concern is spending it rather than dying rich

The idea now is to have 21x£85k pots, 7 each and 7 joint. We want these in different financial institutions regulated by the Financial conduct authority so we have the protection of £85k per person or joint in case the bank goes bump.
If we can achieve 5%+ interest rate, then the capital will remain and we can live of the interest, abate paying tax on the interest. Of course I want to live a long time and enjoy my hard earned, travel and use my MoHo and villa, and I realise interest rates will crash, it is then that I’ll revert to drawing the capital and if I spend the capital by the time I’m 95, hey who cares, I’ll sell the houses.
Live long and prosper and live every day like it’s your last…

 

[our poppy 5]

Right I must point out this has nothing whatsoever to do with me and you can tell me so if you want.
You are apparently getting two pensions which should be enough to keep you , what are you planning on doing with this quarter of a million in numbers on paper at approaching 70.
Why are you worried about the odd percent or two.

Because, after working like a dog, and saving like a nut, the government taxed me to the hilt, I for the last 10 years have got 0.5% interest at best, in many cases 0.10%. then successive governments have taken bigger and bigger slices of my pie in tax.
Now that the 45 years of blood sweat and tears are over and I’m selling the business at under market rate, the government want capital gains tax, corporation tax and income tax. I will pay more than 50% of the business value in taxes. The government and banks have never given me anything. I asked the banks for an overdraft facility 20 years ago, then during covid and both times they said no.
I want them to pay me the highest interest rate possible on the money I have saved over 45 years. Without risking the capital. Why not, they made enough out of me..

 

[stevewagner]

Nothing special about these bonds actually.

Regular savings accounts

Get the best regular savings accounts by ignoring normal best buy tables - you could earn up to 7% by reading our guide at Money Saving Expert

www.moneysavingexpert.com

Those bonds are limited to a set amount of savings per month so you are not going to earn as much interest as you would by putting a lump some in a lower rated bond.

 

[stevewagner]

I have looked into the NS&I and personally think its worth a gamble! That said..."A gamble"? Just want for Carolyn not to be short or left out !
The biggest issue I have is that she too uses this site to browse . Im guessing that she will know sooner or later what I have been up to?

Been nice knowing you all.....If I dont respond.....Jesus has me sooner than I thought!

Regards Kev

It’s not a gamble its guaranteed

 

[stevewagner]

I’ve looked at that many interest rates over the last few weeks I don’t have a clue where I saw it. But I keep looking. It’s nice for our hard earned to make a better interest rate, I bought my first house at 18 in 1976, a few years later the interest rate was crippling, I’m sure it hit over 18%. So mortgages today at 6% is still not that high compared to what we had to pay, and there was no tax credits, no benefits, no help at all.

But we did get MIRAS from 1983

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[chaser]

Because, after working like a dog, and saving like a nut, the government taxed me to the hilt, I for the last 10 years have got 0.5% interest at best, in many cases 0.10%. then successive governments have taken bigger and bigger slices of my pie in tax.
Now that the 45 years of blood sweat and tears are over and I’m selling the business at under market rate, the government want capital gains tax, corporation tax and income tax. I will pay more than 50% of the business value in taxes. The government and banks have never given me anything. I asked the banks for an overdraft facility 20 years ago, then during covid and both times they said no.
I want them to pay me the highest interest rate possible on the money I have saved over 45 years. Without risking the capital. Why not, they made enough out of me..

I understand that mate , pretty much done the same myself farming without the quarter of a million in numbers.
My question was what do you intend doing with it?

 

[The Wino]

But we did get MIRAS from 1983

And property prices relative to wages were a lot lower than now in many areas

 

[our poppy 5]

I understand that mate , pretty much done the same myself farming without the quarter of a million in numbers.
My question was what do you intend doing with it?

Spend it. It’s what it’s there for.

 

[mikebeaches]

My question was what do you intend doing with it?

In addition to enjoying some of it, having funds for a rainy day.

If some urgent medical care is suddenly required and the NHS can't deliver in a timely fashion, there are then other options.

One or both need to go into care, with reasonable funds it's possible to have more control over the quality and comfort available in your final years...

Hopefully neither of the above are required, then there's a handy bonus for offspring and grandchildren.

 

[The Wino]

Because, after working like a dog, and saving like a nut, the government taxed me to the hilt, I for the last 10 years have got 0.5% interest at best, in many cases 0.10%. then successive governments have taken bigger and bigger slices of my pie in tax.
Now that the 45 years of blood sweat and tears are over and I’m selling the business at under market rate, the government want capital gains tax, corporation tax and income tax. I will pay more than 50% of the business value in taxes. The government and banks have never given me anything. I asked the banks for an overdraft facility 20 years ago, then during covid and both times they said no.
I want them to pay me the highest interest rate possible on the money I have saved over 45 years. Without risking the capital. Why not, they made enough out of me..

But you're not getting the most out of your money with your strategy because you are not getting the best interest rate for your money. If at the end of a year you have a certain amount of money it doesn't matter if that's come from the original capital or interest earned all pounds are worth the same and there's no risk to capital with the n s and I unless the government go broke in which case all money is worth nothing.
If you had say £550k and put 500k of it into 6.2% interest bond and spend from the other 50k while it's in an interest bearing current account you will at the end of a year if you spend 50k capital £531k plus the interest on the 50k as it reduces probably another £1k
If you put £550 k into 5.08% interest paid monthly at the end of the year you will have about £ £27940 paid out in interest over a year a total of £577940 so if you spent the same amount of 50k you will have £527940 in the bank.
In both cases the capital is just as secure.

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[nicholsong]

How does one go about buying the Ns&I Bond from an ISA or SIPP platform like Hargreaves or AJ Bell

 

[pagey]

I think the bond for a year then buy a house could be a smart move. House prices are dropping at the moment.

agreed

 

[mikebeaches]

How does one go about buying the Ns&I Bond from an ISA or SIPP platform like Hargreaves or AJ Bell

I don't believe you can.

Only available to purchase online directly from NS&I.

Note also, the Bond doesn't qualify to go into an ISA or a SIPP.

 

[nicholsong]

I don't believe you can.

Only available to purchase online directly from NS&I.

Note also, the Bond doesn't qualify to go into an ISA or a SIPP.

Mike

I thought that might be the case, but if so why do HMG encourage me to invest in corporate bonds rather than their own bonds?

Geoff

 

[CazPaul]

Far better idea

He said he wants 21x85k pots that is 1.78 million quid, good grief.
I’ve been working out how to get a bit more overtime in to pay the bills

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[chaser]

He said he wants 21x85k pots that is 1.78 million quid, good grief.
I’ve been working out how to get a bit more overtime in to pay the bills

There really has to be a limit doesn't there , apparently he has three cars a motorhome and a villa, that's fine if he has earned it , no problem with that but I don't think I would be worrying about a point of a percentage on it.

 

[CazPaul]

There really has to be a limit doesn't there , apparently he has three cars a motorhome and a villa, that's fine if he has earned it , no problem with that but I don't think I would be worrying about a point of a percentage on it.

Lol then he’s worried about snuffing it without spending the lot a percentage or 2 would be the last thing on my mind

 

[Oscarbobs]

Spend it. It’s what it’s there for.

If your looking to bank circa 1.8million take a look at Flagstone. It will alow you access to numerous accounts through one easy portal. I've used it for the last 3 years. You can protect your money by placing 85k or £170K within the many banks on offer.

 

[our poppy 5]

If your looking to bank circa 1.8million take a look at Flagstone. It will alow you access to numerous accounts through one easy portal. I've used it for the last 3 years. You can protect your money by placing 85k or £170K within the many banks on offer.

Looked at that, but my reading is if banks or financial institutions are linked then the total protection is still only 1x85k and it’s hard to say how they are linked. Like with Farage his bank and the NatWest!

 

[Oscarbobs]

Looked at that, but my reading is if banks or financial institutions are linked then the total protection is still only 1x85k and it’s hard to say how they are linked. Like with Farage his bank and the NatWest!

Your correct but you can be 100 % protected.

All the facility does is allow you to deposit funds in numerous banks without having to open new accounts. They charge .25 percent for the privilege but it is worth it (to me) for the convenience.

You can select instant access accounts or lock money away for 1,2,3,4 or 5 years & view all the accounts in one place. The facility can also check that none of your chosen banks are affiliated to ensure your money remains protected. Its a simple way to park/protect cash.

Flagstone member banks usually have higher interest rates than the mainstream offerings but for the moment you'll struggle to beat the NS&I deal of up to £1000000 protected in one account.

Have a look at Flagstone though, you used to be able to play around with a dummy account on their website.

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[pagey]

The more I read this it reminds me of 598