NS&I slashes Premium Bond prizes and savings rates

Millions of savers were dealt another blow earlier this month as NS&I announced rate cuts across their range, with even Premium Bonds affected. National Savings and Investments (NS&I) was set up to provide a relatively cheap source of government borrowing. It offered security, simplicity and dependable returns and has remained a favourite for savers. As a state owned savings bank, it has never set out to deliver market leading returns, and actually has rules in place to prevent it offering products that would stifle competition. However, despite moderate returns, a combination of a ...

Do you have unrealistic retirement expectations?

Performance evaluation paper with smileysPredicting your income in retirement is tricky at the best of times, even with the help of a financial adviser it can be fraught with difficulties. The results of research conducted by Consumer Intelligence on behalf of Investec Wealth & Investment are therefore hardly surprising. Unrealistic retirement expectations The study found that higher earners, with incomes of over £50,000, expect their private pension to provide an income in retirement equivalent to 44% of their pre-retirement salary. However, the research also showed that this expectation is unrealistic with the actual income ...

Savings: Blow for savers as NS&I cuts Premium Bonds

National-Savings-and-Inve-001Savers have been left disappointed following news that National Savings & Investment (NS&I) is to cut the interest rates on some of its most popular accounts and reduce the returns payable to holders of Premium Bonds. Premium Bonds NS&I has announced that from 6th June 2016, the chances of winning a prize from Premium Bonds will rise from 1 in 26,000 to 1 in 30,000, with the overall prize fund reducing from £67.5 million to £62.9 million. Although technically prizes, to allow comparison with more traditional savings accounts, the returns from Premium Bonds ...

Savings: As Pensioner Bonds are withdrawn; five alternatives options for your savings

As Pensioner Bonds are withdrawn; five alternatives options for your savingsAfter record sales, Pensioner Bonds, with their table topping rates, have now been withdrawn. So, if you are a more elderly saver, where should you be looking now for the best return on your cash? First things first though, a quick word on inflation. Over the past few months inflation, as measured by the Consumer Prices Index (CPI), has hovered around zero. It might therefore be natural for some savers to 'take their foot of the gas', relax and stop searching so ...