I keep getting the same CRM emails every week as the weekly rate diminishes. It doesn’t make for inspiring reading. Frankly, it’s mundane to the point of being boring now.
The DMO shows “weekly tenders are typically for maturities of 1 month (approximately 28 days), 3 months (approximately 91 days) and 6 months (approximately 182 days).” I think it’s low-hanging fruit for FT to have 1-month, 3-month and 6-month Treasuries available for people to secure their money for longer and develop trading strategies that make more sense for them.
It also helps FT nurture and maintain AUA over longer terms, though it may have a negative offset of reduced trading.
The rate is bound to diminish given the way interest rates are going so not unexpected. I agree I hope they roll out 3 and 6 month treasuries too and I am sure I heard somewhere that this was part of the plan.
Im still hopeful that we will get a cash reinvest option. You can’t reinvest the original amount only. Unless some knows a way without uninvesting all and then reinvest as a seperate order ?
Btw have people looked at how this actually works (described on Freetrade site)? It’s not exactly a straight forward process and Freetrade seem to have put together a pretty good system here.
@acamp just a comment to say nice work to the people who worked on this system.
I can’t get it to go beyond 99% which is less than the original amount the month before.
For example if i was to use a formula like 3% inflation 1% increase to saving and what is left over as funds to invest in something else. I can’t seem to be able to withhold that amount.
If you leave it to auto reinvest for a few months, so the capital builds up enough, would it work then?
So, for example (using 5% as it’s easy to work out) Invest £100 = the first month at 5% you make roughly £0.38p, so you now have £100.38.
Month 2, another £0.38p, so you now have £100.76.
Month 3, another £0.38p, so now the total is £101.14 and NOW you can switch to reinvest 99%
It’s not perfect, but at the end of month 3 (or when you cross that threshold) you can start to skim out the extra bits and reinvest roughly the original amount.
Please bear in mind my maths has only worked to 2 decimal places so there may be the odd accumulated fraction of a penny that might add up along the way, and assumes a 5% return on every month’s tender, which is clearly not the case! Also would depend on how much you start off with.
Come to think of you get 5% for any cash in ISA anyway and if need the money it’s only 5 days compared to 28
So maybe I’ve answered my own question thanks anyway @Kiava
Yeah but I thought when you said big pimping money that it would be over 3k. So yeah 28 days then you need to wait until the Monday for the payment unless you reinvest then it’s never out getting the interest
thanks anyway