Anyone with any spare cash who wants a secure home for it and does not mind 
tying it up for 3 years should take a look at National Savings Index linked 
certificates. If you are a standard rate tax payer the interest rate 
currently works out at 7.05 % gross. If you are a 40% payer it is 9.3%. It 
cannot be beaten and has total security and will always make sure you get at 
least 1% greater than inflation.

"Not Today"  wrote >

 Anyone with any spare cash who wants a secure home for it and does not mind
> tying it up for 3 years should take a look at National Savings Index 
> linked certificates. If you are a standard rate tax payer the interest 
> rate currently works out at 7.05 % gross.


I get 7% gross with Nationwide and I've only had to commit to one year (this 
deal is no longer being offered).

I wouldn't commit for longer because I think the next interest rise may be 
upwards.


-- 
Regards, Vince.

Harry Monk's Long Distance Diary   Luton-Huelva

http://trucknetuk.com/phpBB2/viewtopic.php?t=34657 (New 9th August 2008)

"Knight Of The Road"  wrote in message
news:5_adnX8v_MxyITfVRVnyuQA@bt.com...
>
>
> "Not Today"  wrote >
>
> Anyone with any spare cash who wants a secure home for it and does not
> mind
>> tying it up for 3 years should take a look at National Savings Index
>> linked certificates. If you are a standard rate tax payer the interest
>> rate currently works out at 7.05 % gross.
>
>
> I get 7% gross with Nationwide and I've only had to commit to one year
> (this deal is no longer being offered).
>
> I wouldn't commit for longer because I think the next interest rise may be
> upwards.


Well, that's the conventional view. As inflation increases the Bof E
increases interest rates to reduce it.

Here is another view. We are now at the beginning of the biggest financial
crash, depression, call it what you will, since the Great Depression of the
30s. If credit contracts further as it is, industrial growth will turn
negative, oil, gold and commmodity prices will crash, the dollar will rise,
the Euro and Sterling will be stuffed, the stock market will crash another
50%, unemployment will soar, social cohesion will break down, and deflation
will be here. Any sign of that happening and the government and BoE will
panic and reduce interest rates to almost nothing. It will not do any good
but they will do it anyway. The only thing to hold during this time will be
cash. If I were you I would not buy another house until at least 2013/14 for
that is the time this cycle will take to bottom.

Take your pick. But do not trust financial pundits, they did not see this
crash coming even 12 months ago. The US Federal Reserve Secretary said
exactly this time last year that the economies of the western world were the
strongest they had been in his lifetime. Yea right!

"Not Today"  wrote

> Here is another view. We are now at the beginning of the biggest financial
> crash, depression, call it what you will, since the Great Depression of 
> the
> 30s. If credit contracts further as it is, industrial growth will turn
> negative, oil, gold and commmodity prices will crash, the dollar will 
> rise,
> the Euro and Sterling will be stuffed, the stock market will crash another
> 50%, unemployment will soar, social cohesion will break down, and 
> deflation
> will be here.


I think these things are gathering on the horizon as we speak.



Any sign of that happening and the government and BoE will
> panic and reduce interest rates to almost nothing. It will not do any good
> but they will do it anyway.


It's tricky though because runaway inflation destroys an economy and this 
can only be held in check with interest rates. Personally, I think that if 
they go up once, they will go up several times. The BoE has been in a 
three-way split for a couple of months now so there are those in the BoE 
calling for increases.

I'm not sure which way they will go next, I only think they *may* rise. So I 
won't tie up money at the moment for longer periods than a year.





-- 
Regards, Vince.

Harry Monk's Long Distance Diary   Luton-Huelva

http://trucknetuk.com/phpBB2/viewtopic.php?t=34657 (New 9th August 2008)

"Not Today"  wrote in message 
news:24bkht.dov.19.1@news.alt.net...
>
> "Knight Of The Road"  wrote in message
> news:5_adnX8v_MxyITfVRVnyuQA@bt.com...
>>
>>
>> "Not Today"  wrote >
>>
>> Anyone with any spare cash who wants a secure home for it and does not
>> mind
>>> tying it up for 3 years should take a look at National Savings Index
>>> linked certificates. If you are a standard rate tax payer the interest
>>> rate currently works out at 7.05 % gross.
>>
>>
>> I get 7% gross with Nationwide and I've only had to commit to one year
>> (this deal is no longer being offered).
>>
>> I wouldn't commit for longer because I think the next interest rise may 
>> be
>> upwards.
>
>
> Well, that's the conventional view. As inflation increases the Bof E
> increases interest rates to reduce it.
>

A detail you may not know. Even the BofE recognises that it takes 2 years 
for the impact of a change in base rate to "filter though" to worthwhile 
change in inflation rate.

As an analogy, imagine a bus been driven by a blind driver with only one 
passenger who can see. The sighted passenger is sitting at the back and 
relays his directions to the driver via the other passengers.


Brian

"Brian Reay" <see@website.invalid> wrote in message 
news:XEDqk.41523$Ft5.34196@newsfe29.ams2...
>
>
> "Not Today"  wrote in message 
> news:24bkht.dov.19.1@news.alt.net...
>>
>> "Knight Of The Road"  wrote in message
>> news:5_adnX8v_MxyITfVRVnyuQA@bt.com...
>>>
>>>
>>> "Not Today"  wrote >
>>>
>>> Anyone with any spare cash who wants a secure home for it and does not
>>> mind
>>>> tying it up for 3 years should take a look at National Savings Index
>>>> linked certificates. If you are a standard rate tax payer the interest
>>>> rate currently works out at 7.05 % gross.
>>>
>>>
>>> I get 7% gross with Nationwide and I've only had to commit to one year
>>> (this deal is no longer being offered).
>>>
>>> I wouldn't commit for longer because I think the next interest rise may 
>>> be
>>> upwards.
>>
>>
>> Well, that's the conventional view. As inflation increases the Bof E
>> increases interest rates to reduce it.
>>
>
> A detail you may not know. Even the BofE recognises that it takes 2 years 
> for the impact of a change in base rate to "filter though" to worthwhile 
> change in inflation rate.
>
> As an analogy, imagine a bus been driven by a blind driver with only one 
> passenger who can see. The sighted passenger is sitting at the back and 
> relays his directions to the driver via the other passengers.

that's such a crap analogy 


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