cb25
Posts: 3,523
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Post by cb25 on Sept 29, 2022 9:33:48 GMT
Charter Savings Bank is paying 2.25% on its Easy Access Issue 28 account
Oaknorth is now paying 2.50% on its 120 Days Notice account (previously 2.36%)
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Post by erniec on Sept 29, 2022 11:15:37 GMT
ajuGet out of premium bonds. Although the nominal rate has increased from 1.4% to 2.2%, the return has barely moved. Odds have decreased from 24,500 to 1 to 24,000 to 1.
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Post by Ace on Sept 29, 2022 11:30:31 GMT
aju Get out of premium bonds. Although the nominal rate has increased from 1.4% to 2.2%, the return has barely moved. Odds have decreased from 24,500 to 1 to 24,000 to 1. That's nonsense. The odds haven't improved much, but the expected average return has materially increased.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Sept 29, 2022 11:33:27 GMT
aju Get out of premium bonds. Although the nominal rate has increased from 1.4% to 2.2%, the return has barely moved. Odds have decreased from 24,500 to 1 to 24,000 to 1. I presume you're a non taxpayer,(or at least below the tax thresholds) as once you take the tax free status into account, the return looks far more competitive.
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aju
Member of DD Central
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Post by aju on Sept 29, 2022 14:12:19 GMT
aju Get out of premium bonds. Although the nominal rate has increased from 1.4% to 2.2%, the return has barely moved. Odds have decreased from 24,500 to 1 to 24,000 to 1. I presume you're a non taxpayer,(or at least below the tax thresholds) as once you take the tax free status into account, the return looks far more competitive. I am a taxpayer but Mrs Aju isn't until next May when her NSP will sadly raise her up to tax status. I understand what ernie is saying but have not investigated the returns levels as I have £25 in there and am most definitely a tax payer. All that said most of of our savings etc are directed at Mrs Aju as she is not a tax payer. I guess its a game of trying to hold off until the rates are raised considerably. We are no longer in P2P since Zopa and RS withdrew. We are not doing as well as we were some 2/3 years ago but then most people are not. We are now in that area of investments maybe too long so we chase the best rates we can get for the most amount of money. Not the best game with the rates being so low but the game is changing and the next few months may mean we have to consider different approaches with earnings over the tax thresholds - Now where was it i saw those resent ISA offers ...
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Post by erniec on Sept 29, 2022 20:13:02 GMT
aju Get out of premium bonds. Although the nominal rate has increased from 1.4% to 2.2%, the return has barely moved. Odds have decreased from 24,500 to 1 to 24,000 to 1. That's nonsense. The odds haven't improved much, but the expected average return has materially increased. In your opinion. I disagree. With the odds barely changed and the extra 0.8% going to a small number of high value prizes, the return will be much the same as today for the average holder. In my opinion, the average return has only moved from 1.22% to 1.25%. Poor even for a taxpayer against easily achievable 3.9% on a 1 year bond.
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Post by Ace on Sept 29, 2022 20:46:21 GMT
That's nonsense. The odds haven't improved much, but the expected average return has materially increased. In your opinion. I disagree. With the odds barely changed and the extra 0.8% going to a small number of high value prizes, the return will be much the same as today for the average holder. In my opinion, the average return has only moved from 1.22% to 1.25%. Poor even for a taxpayer against easily achievable 3.9% on a 1 year bond. Sorry erniec, but it's a matter of mathematical fact, not a matter of opinion. The high value prizes (£10k to £1m) are forecast to increase by a total of £3,975,000. The other prizes are forecast to increase by £79,265,450. So, less than 5% of the 0.8% increase in prize money will go to the high value prizewinners.
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Post by erniec on Sept 29, 2022 21:14:08 GMT
Then my logic is wrong!
… but, with the odds pretty much the same as before, someone with the maximum holding will still only win two prizes on average and they will likely be 2 x £25. This means 12 x £50 = £600 of an annual return on £50,000. This is why I consider it a return of just over 1.2%.
If the odds were 25,000 to 1, the return would be 1.2%. As they are now 24,000 to 1, I consider the return around 1.25%.
It is very rare for anyone to get any of the higher prizes. As I said, I’m out.
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Post by Ace on Sept 29, 2022 21:49:04 GMT
Then my logic is wrong! … but, with the odds pretty much the same as before, someone with the maximum holding will still only win two prizes on average and they will likely be 2 x £25. This means 12 x £50 = £600 of an annual return on £50,000. This is why I consider it a return of just over 1.2%. If the odds were 25,000 to 1, the return would be 1.2%. As they are now 24,000 to 1, I consider the return around 1.25%. It is very rare for anyone to get any of the higher prizes. As I said, I’m out. Your error is in the assumption that all of those 24 prizes will be £25. With the new prize fund that is no longer the case. As I posted in the Premium bond thread: So, the chance of winning has improved very slightly, but if you do win the chance of it being more than £25 has increased from 1 in 55.4 to 1 in 3.4. So, on average, 7 of those 24 prizes will be for £50 or higher. In fact 3.5 of those 7 will be for £100 or more. So your above forecast of £600 of prizes would most likely become £950 (17*£25 + 3.5*£50 + 3.5*100), disregarding your chance of winning even higher value prizes. EDIT: in fact, someone with £50k would win 25 prizes on average, so the the likely winnings would be £1000.
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Post by erniec on Sept 29, 2022 22:09:00 GMT
OK. So a return of 2%, equivalent to 2.5% for a basic rate taxpayer. As I said, I’m out. I can easily right now get high 3%, even 4% on a one year bond.
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cb25
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Post by cb25 on Sept 30, 2022 14:46:19 GMT
Al Rayan Everyday Saver Issue 3 expected profit rate of 2.35% (£5,000+)
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Post by df on Sept 30, 2022 19:20:54 GMT
Al Rayan Everyday Saver Issue 3 expected profit rate of 2.35% (£5,000+) I've seen Charters' offer this morning - registered and opened the account, but decided to wait until the end of next week before making a deposit in case somebody else comes up with a better offer. At 16:30 got the email from Al Rayan (since opening issue 3 they've been on the top of IA game)... so no need for Charters any more. I don't think I've ever done this before, opening an account and dumping it on the same day. One thing i didn't like about Charters is the requirement for min 5k in one go. I like making £1 deposit first to make sure I've made no error. Don't understand the purpose of this rule, it's 0.1% for under 5k balance anyway, so it is in saver's interest to get it up to 5k.
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Post by overthehill on Sept 30, 2022 19:42:04 GMT
Al Rayan Everyday Saver Issue 3 expected profit rate of 2.35% (£5,000+) I've seen Charters' offer this morning - registered and opened the account, but decided to wait until the end of next week before making a deposit in case somebody else comes up with a better offer. At 16:30 got the email from Al Rayan (since opening issue 3 they've been on the top of IA game)... so no need for Charters any more. I don't think I've ever done this before, opening an account and dumping it on the same day. One thing i didn't like about Charters is the requirement for min 5k in one go. I like making £1 deposit first to make sure I've made no error. Don't understand the purpose of this rule, it's 0.1% for under 5k balance anyway, so it is in saver's interest to get it up to 5k.
I read that as the first £5k of your total was 0.01% ! It's ambiguous to me, all it says is 0->5k is 0.01% and 5k->1M is 2.25%.
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Post by overthehill on Sept 30, 2022 20:02:52 GMT
Waiting for interest rate increases is not that simple, depends how much rates go up, what your idle money is currently earning and what the rate is at the end of 12 months.
25k * 4% = £1000pa
or wait 1 month and
25k * 4.5% = £1031 after 11 months.
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Post by df on Sept 30, 2022 20:11:16 GMT
I've seen Charters' offer this morning - registered and opened the account, but decided to wait until the end of next week before making a deposit in case somebody else comes up with a better offer. At 16:30 got the email from Al Rayan (since opening issue 3 they've been on the top of IA game)... so no need for Charters any more. I don't think I've ever done this before, opening an account and dumping it on the same day. One thing i didn't like about Charters is the requirement for min 5k in one go. I like making £1 deposit first to make sure I've made no error. Don't understand the purpose of this rule, it's 0.1% for under 5k balance anyway, so it is in saver's interest to get it up to 5k.
I read that as the first £5k of your total was 0.01% ! It's ambiguous to me, all it says is 0->5k is 0.01% and 5k->1M is 2.25%. No, under 5k is 0.1% Not that it makes much difference, anything below 2% is uncompetitive now.
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