£10 in a National Savings Investment Account

[Shude]

not sure if any tax deducted as I haven't had the passbook back yet.

According to the inside of the book the tax is not collected at source.

I'm sure there is an argument that this interest was earned back in the 80s when we were children and as it's less then the allowance of the time it's not an issue.

 

[renault12ts]

The more I think about it I just don't believe it will have grown so well. I suspect that other money has been deposited (and forgotten) without the passbook being marked up.

Tell us when you get the book back.

 

[C240Sport97]

The more I think about it I just don't believe it will have grown so well. I suspect that other money has been deposited (and forgotten) without the passbook being marked up.

Tell us when you get the book back.

will do.

I agree. I was speechless when I saw the amount in my bank account.

 

[renault12ts]

If £10 achieved the average savings rate pa since 1987 gross, then it would have grown to about £50.

 

[Troon]

Growing 18.202 times in 24 years is an annual rate of about 24.2%. Seems a touch high.

 

[scottishman2]

Growing 18.202 times in 24 years is an annual rate of about 24.2%. Seems a touch high.

24.2% seems a touch high..... that would turn £10 into £1815 over 24 years.... I'll have some of that please.

 

[Shude]

The investment savings account was demand in writing only at least one month in advance of requirement and attracted a very high level of interest, in the 80s it was in line with inflation and mortgages so probably over 10% APR at times.

I'm about to ring up National Savings right now to get mine closed, suspect mine are worth a combined £400.

 

[Troon]

24.2% seems a touch high..... that would turn £10 into £1815 over 24 years.... I'll have some of that please.

My turn to screw up the maths. Let's try 12.85%, then: still pretty darn good.

 

[Apial]

If only instead of "investing" £50k in a 300CE-24 in 1991, and putting the cash in the National Savings Investment Account, I could probably be retiring right now.

You can add in the servicing, tyres, fuel, road tax, and insurance too, and I woild be looking at nearly £1m????

 

[Shude]

If only instead of "investing" £50k in a 300CE-24 in 1991, and putting the cash in the National Savings Investment Account, I could probably be retiring right now.

You can add in the servicing, tyres, fuel, road tax, and insurance too, and I woild be looking at nearly £1m????

Buying a new car is rarely going to increase your wealth

The proceeds from my accounts will likely go into a savings fund for my first born, due in a couple of months. Or maybe on tidying up the tinworm starting on the front arches of my w208. Tricky decision...

 

[C240Sport97]

The proceeds from my accounts

can't wait to hear your story ...

we need last balance and date, and amount returned please.

 

[renault12ts]

My turn to screw up the maths. Let's try 12.85%, then: still pretty darn good.

It would have to have done a compound rate of 12.85% to achieve the stated figures. From 1987 until the end of 1992 the rates would have been (relative to today) very high...but would have fallen after this. I think we will find other monies were invested but not recorded.

 

[Shude]

we need last balance and date, and amount returned please.

Might as well record the first info here.

Ordinary: 21/06/1996 / £31.31
Investment: 31/12/1993 / £372.42

They have posted the forms out to me so I will fill in and send off ASAP.

 

[Shude]

Paperwork done and in the post to NS&I. According to their website the accounts still attract interest but the "ordinary" account has been turned into a "residual" account and only gets 0.1% but the investment is around the 2.5-3% mark.

Will be interesting to see what these are worth. Ordinary I reckon is no more than £40, Investment could be as much as £800 if the average interest rates are to be believed for those years. Fingers crossed

 

[C240Sport97]

been thinking ...

they may have made a mistake ... it may have been £18.20 instead of the £182.02 they paid.

still no sign of my passbook.

 

[Igurisu]

I think the 12.85% mentioned by Troon is certainly realistic for the late 80's/early 90's. I recall when we moved to our second home in 1989 we were paying interest at 13.5%.

 

[John]

The high interest rates around then were caused by the government trying to support the ERM which was going **** up.

 

[Shude]

This morning National Savings deposited £703.71 into my current account!

I don't know whether this is a combination of both accounts or just the investment account (the "residual" might take longer perhaps?).

Will look forward to getting the pass books back so I can see what happened

 

[C240Sport97]

I still have not had my passbook returned ..

 

[renault12ts]

I still have not had my passbook returned ..

They miscalculated and are afraid to return it.