NS&I slashes savings limit on popular bonds to just £10,000, down from £1 million

[mr-dead]

NS&I slashes the savings limit on popular bonds to from  £1,000,000 down to just £10,000, a 99% reduction.

https://www.moneysavingexpert.com/news/banking/2018/06/nsi-slashes-savings-limit-on-bonds-to-just-10000?_ga=2.164607608.613083367.1528972827-608727597.1521835263

 

This is a big deal as they are government backed so the full million was protected rather than the usual £85k with other banks.  If you are looking for somewhere "safe" to park your £1 million its now a little more difficult.

 

Makes you wonder why the sudden change, another financial crisis around the corner?

 

[matrawr]

Maybe trying to prevent the next crisis? A million £'s spent is better for the economy than stashing it away somewhere right?

[Oldun]

.......and can be taxed at vat rates if you do. They want your money.......coz 30 years of overspending and lax government (good time charlie, Blair, started it back in the 90s) has left the country with big public debt.

[Provvidenza]

I think people are reading a little too much into this, you can still invest £M into each of the equivalent variable rate bonds, just not the guaranteed rate (which pays higher interest). All banks limit the amount of cash you can place into any particular product, in order to manage demand and achieve net financing targets, so it's no different. Fact is your savings will be guaranteed, they can print as much fiat as they need to, the question is how much will you be able to buy with it after a financial crisis?

[Pete]

Wonder how many captains of industry, BBC presenters and sports personalities will now relocate their NS&I deposits to Switzerland, Liechtenstein, and the Cayman Islands ?. Not that any of them knew about these places ?. 

[Avrocarr]

With interest rates still at rock bottom after several years, N,S & I (which are 100% government backed) have attracted large inflows from savers. Government borrowing is down a bit at the moment so N,S & I's target for savers money may have been reduced. Effectively they only want your money if they need it or have to borrow on the gilt markets at higher interest rates. At the moment they don't need it.

It does mean there are slightly less choices for cash savings than before, but you can still save £2m with them in their direct saver earning 0.95%. This doesn't seem too shabby.