Updated: Why Rishi Sunak’s rip off rates at National Savings should be boycotted this month

Rishi Sunak: King of the rip off rates for the ordinary savers

See end of this blog for three accounts offering you more money than these scam rates

While The Treasury has had to hand out the largesse to keep the economy alive during the Covid-19 pandemic a really nasty trick is being played on the millions of small savers who rely on National Savings for a safe home for their money.

Effectively Rishi Sunak, the Chancellor, is making sure that millions of savers and those who have a flutter on the Premium Bonds subsidise the government’s multi billion pay outs by losing money every year they invest.

Their savings are being destroyed and made smaller every year – even if we are having record lower rates of inflation.

It is also sending out an appalling message to people who wish to save money by telling them that even their meagre savings will be reduced year on year as inflation erodes them.

What I am talking about is the new interest rates being offered by National Savings from November 24. They echo the free fall in interest rates offered by most banks hit by the Covid-19 panic. The only difference is that this government will use your money to prop up their finances.

The rates are truly horrendous as shown here. The worst case example are Income Bonds shown here.

As you can see the rate falls from 1.15 per cent to 0.01 per cent – virtually providing nobody with any income. Indeed if you have less than 646 pounds invested you literally won’t even get a penny.

Similarly with an investment account. And you will get far fewer prizes from premium bonds – the odds rise from 24,500 to 1 to 34,500 to 1.

So basically this is one giant rip off – in total contrast to the rich and wealthy who can game the stock market , invest in tax havens or have the money to take advantage of investment returns in China and the Far East. Indeed as there is a limit on claiming Universal Credit if you have savings above six thousand pounds in National Savings it is worth spending them or your payment will be reduced. If you have over sixteen thousand pounds you won’t get a penny.

I notice Rishi Sunak himself has recently set up a blind trust which means he has substantial investments – which he does not want people to know about. I bet you they are not offering a return of 0.01 per cent to help fund his millionaire life style.

UPDATE: Three accounts which give you higher interest if you want to boycott National Savings

According to the reliable Which? Money there are three instant access savings accounts that offer you higher interest and allow you to access your money. All three have unfortunately now been withdrawn but their replacements still offer better value than anything at National Savings

The new ones are:

Coventry Building Society Easy Access Isa. Tax free and pays 0.50 per cent . Can withdraw money at any time

Principality BS Easy Access Web Saver 0.6 per cent with unlimited withdrawals

Yorkshire Building Society Six Access e-Saver No 3 and e-Saver ISA issue 3 both over tiered rates between 0.2 per cent and 0.6/0.55 per cent and allow sui withdrawals a year

11 thoughts on “Updated: Why Rishi Sunak’s rip off rates at National Savings should be boycotted this month

  1. Thanks a million pensioners hit again.
    Well kids don’t save for your pension because the government will take it of you in taxes. While they sit on big fat pockets of money. Interest rates crap so we have to spend our saving because can’t manage on skinny British state pension

    Liked by 1 person

  2. And why is isolating now from age 60?

    Have we become ‘a developing nation’ now? We were a fully-fledged one in March 20 lockdown when it was only necessary per PM to isolate at 70+?????

    Liked by 1 person

    • Yes Pauline, I noticed this too. As one of the 1950’s women, my thinking is that due to the Back to 60 Appeal in the High Court being thrown out, this Government now feels safe to acknowledge that over 60’s are actually in the vulnerable group. Even when the WHO was mentioning people over 60 as in the ‘at risk’ group back in Feb/March. This developing nation thing was just the usual Government BS to exclude them from conforming to WHO advice. The 1950’s Women were thrown to the wolves the moment the SP Retirement age was increased, in my case to 66. Who the hell would anybody feel comfortable voting for in this Country now, When all you ever read are reports like David’s on how, even now in the middle of this Covid disaster, this Government (Chancellor in this case) is spending time lining the pockets of the rich. I will never vote again in ANY election held in this Country, because what is the point. Better close now as I have an interview to get ready for. Some would say lucky. I shouldn’t even be in this position as somebody in their 63rd year, but no Pension equals no choice! The fact that i won’t feel safe if/when I get this job given the state of the Country. Any man in this position is likely feeling exactly the same. I wonder how many over 60’s, men or women. are in jobs that ‘could’ be done by all these young people who have been so ‘hit hard’ by the effects this Virus has done to the economy. Give all over 60’s their Pensions and free up hundreds of thousands/millions of jobs.

      Like

  3. Once again, hit the pensioners first! That is: those people who after decades of contributions are either pensioners of had their pensions stolen from them for up to six years – along with TV licences and the great SERPS scam and, left to the government, their bus passes. I agree with AJ, unless your pension pot is well into the hundreds of thousands, you would be better to spend it all while young and you can enjoy it!

    Like

  4. Maybe Rishi should improve the interest rate on NS&I savings, and then sell “war bonds”: sorry I mean Covid bonds.

    On Mon, 2 Nov 2020 at 14:24, Westminster Confidential wrote:

    > davidhencke posted: ” Rishi Sunak: King of the rip off rates for the > ordinary savers While The Treasury has had to hand out the largesse to keep > the economy alive during the Covid-19 pandemic a really nasty trick is > being played on the millions of small savers who rely” >

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.