What was in the weekend’s papers? (22/02/2021)

Category: News

NS&I blocks loyal savers from accessing their own cash

Holders of savings bonds with National Savings & Investments could find their money locked away, according to The Telegraph. Previously customers could withdraw their cash at any moment with a penalty of 90 days’ interest. However, untouched savings are being automatically put into newer bonds which removes such an option.

NS&I said customers were given a minimum of 30 days’ notice before their terms ended and had the same amount of time in a cooling-off period from the date their terms started.

Being the safest savings provider around, it seems NS&I has been taking too much advantage of its market-leading position. It may be worth considering if you could put the money to work for the longer term by investing it.

Brokers under pressure as more than half of funds on ‘best buy’ lists failed in 2020

The Telegraph this weekend warned investors who put their money into ‘best buy’ funds they may have been left short-changed throughout the pandemic.

According to its own research, funds promoted by the five largest brokers in 2020 delivered below-average returns. The analysis found Fidelity suffered the worst loss, with almost two-thirds of the 36 funds the platform company picked failing to keep pace with their peers last year.

Meanwhile, AJ Bell and Charles Stanley fared a little better with fewer the half funds promoted by both brokers delivering above-average results.

This shows how difficult picking funds which have the potential to outperform can be. Sometimes the best option is not to try and to buy an investment that gives you the market return as simply and inexpensively as possible.

Kevin McCloud: £2.3m loss for savers who backed dream homes bond

The Times covers the story of how savers are owed millions after an unregulated investment bond scheme promoted by one of Britain’s best-known property gurus, collapsed. Kevin McCloud, the designer and presenter of Channel 4’s Grand Designs, helped to raise £2.3 million from about 280 investors to fund development projects he would oversee.

With the development not happening the savers have been faced with a total loss of money.

When you ignore some of the main guidelines by which we believe investing should follow, you always run the risk of having a bad investment outcome. When something looks too good to be true, this bond offered investors 9% pa, it usually is.

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