You are nit picking for sake of it.
Yield is yield whether it derives from a yield on maturity of a bond or interest from a savings account. The fact is these bonds have been falling month on month while the T212 interest has remained steady and is currently well above the last gov bond.
I will also correct you about the cash ISA from T212, it is held in banks only with no MMFs, so is basically 100% risk free if within the FSCS limits.
Because they are literally different products. By your argument you’d be better putting your money in UKW because the ‘interest rate’ is higher than 212
If you enable interest, we will hold your cash in qualifying money market funds and banks.
It’s not me saying it, that’s 212 saying it.
You also have misunderstood what FSCS is for. It does not protect you from 212 changing the interest payouts. You agreed when you enabled interest payments that 1. They can use money market funds, and 2. The rate you get paid is subject to immediate change at any time
FSCS may provide compensation (not protection) from the bank failing or misusing funds for example. It would not protect you from 212 failing to pay the interest you expected them to pay if they decide to change the payout at any point.
As above, if you have enabled interest then they can at any point decide to also use money market funds (I’m not sure how that would be reflected to you, it sounds like they’re a little more transparent than they used to be). If you opt out of interest, then they still collect interest on your money but only in banks, and they keep it rather than sharing it.
UKW is an equity, the risk of capital loss, a savings account has no risk of capital loss and you get paid interest. Yes it’s a different product, I never said it was the same product, however both a treasury and a savings account give the investor yield, interest call it whatever you damn like, that is my point.
T212 is paying me a higher % return than gov bonds, over a month by month timeframe, if this changes and gov bonds suddenly provide a higher return, then it’s time to revisit.
Glad we agree it’s not the same. And yeah not once did I suggest you shouldn’t move money to another instrument or not.
Anyone think last weeks miss was possibly due to the markets expectations that there would be the cut this week (as last week has 3 weeks at the lower rate) there for we may not get a large drop this week ?
The vibes were more dovish than expected from the MPC today and the actual 1m yield dropped 20 basis points, so I’m expecting another chunky drop tomorrow.
Nice to be wrong here! 4.43%. No chunky drop today
We must be close to or at only 2% above inflation.
4.40% today.
Noticeable downward shift now.
BoE is 4.5 and I expect bills will roughly fall in line with interest rates in terms of yields. With maybe a little variability as it’s blind auction based.
So this seems about right for a weekly tender, someone can maybe correct me if they think they should behave differently
You guys see that they let you trade gilts now? This is apparently the only platform where you don’t pay a fee to buy/sell gilts. Right now I can’t see anything that provides better return than the monthly bonds BUT gilts move around a lot so it’s possible to buy them cheap and get juiced capital returns as well as the coupon adding up to a nice interest rate.
It’s possible to make a loss on gilts if you sell early and it’s decreased in value, but holding to maturity is risk free Pretty nice option to have gilts on here - I’m pleased with that
Personally I’m staying with these monthlies and stocks for now
I agree with you this is about right
It should slowly trend towards 4.25 at a rate which depends on WHEN the market thinks the Bank will cut next. Which depends on how weak UK economic prints are going forward.
I’m surprised they haven’t made a big shout about it. It’s a good addition. But the forum topic isn’t visible (hidden) so maybe it’s just on the app early in prep
Anyone think the rate will rise as inflation is up ?
Worth remembering that with BOE interest rate at 4.5% and inflation today at 3%, the real return is 1.5%.
Personally, I’d rather invest in hard assets like gold or Bitcoin with limited supply rather than government debt, which is essentially money printing out of thing air, but each to their own.
If you’re after a real return surely you invest in companies that generate future cashflows
The point of these bonds is to give your cash risk-free protection from inflation. It’s just another form of cash similar to £CSH2
Re: bitcoin, scarcity alone doesn’t make something valuable
Its getting to low for my liking now.
4.37% this week
As mentioned before this isn’t the same product, but T212 is moving to 4.50% from 1st March 25. Therefore the short end is showing some significant signs of lower rates, as you would expect after rate cuts.
