What caught my eye this week.
Considering the high hurdle that politicians and business leaders have set themselves for something to be considered a sacking offence, I was surprised to see the boss of National Savings & Investments (NS&I) resign this week.
Of course, the NS&I FUBAR was a rough experience for the 37,500 people affected. NS&I’s mistakes saw bereaved families facing delays accessing their relatives’ Premium Bonds with a total value of up to £476m.
To give just one example from a BBC report:
Tracy McGuire-Brown from Newbury in Berkshire […] took six years to claim £2,000 in premium bonds her late father had left in his will.
The 61-year-old former care home manager says she “cannot describe how upsetting and frustrating” it was to deal with NS&I, and that she had to send in her father’s will and other original documents at her own expense.
“It was the most awful, awful experience,” she says.
No doubt – and not what anyone wants to deal with in the wake of the death of a loved one.
However, NS&I has more than 24 million customers holding £240bn with the institution, so the number affected is relatively small. According to Which the problems were caused by administrative failures – bad, certainly, but not malicious. The long delay between problems emerging and NS&I coming clean is problematic, but again the scale of the operation mitigates this to some extent.
With all that said – and, again, not to make light of having to fight to get your own money back – I think the real reason boss Dax Harkins had to go was because NS&I is held to a higher standard than a typical High Street bank, on the basis of its 100% government backing.
Trust buster
I’ve often recommended NS&I savings or Premium Bonds to fretful – but essentially financially uninterested – friends and relatives looking for somewhere safe to put their cash. Especially after the financial crisis.
No worries about bank runs with NS&I, or Financial Services Compensation Scheme limits, or your savings somehow getting muddled up in riskier lending. Just okay interest rates, the infinitesimal chance to win big with ERNIE, and a recommendation made in the same vein as nobody getting fired for buying IBM.
Also, faith in NS&I’s systems underwrites the Premium Bond draw.
There are already conspiracies about which Bonds win and who gets what prizes. NS&I can do without incompetence creeping into the mix, too.
Further reading:
- A terse apology from National Savings & Investments – NS&I
- NS&I boss replaced as savers left waiting for millions of pounds – BBC
- What caused the missing NS&I savings, and what you should do – Guardian
- Another take on the scandal and next steps if you’re affected – Which
- NS&I will have to pay compensation in some cases, say ministers – This Is Money
Have a great weekend.
From Monevator
Commodities are working – Monevator
The natural yield model portfolio wheels are turning – Monevator [Members]
From the archive-ator: A plan to be financially independent in ten years – Monevator
News
OECD says UK will be hardest hit by Iran war, sees 4% inflation – CNBC
World faces ‘stark and deep recession’, says BlackRock boss – This Is Money
Temporary petrol shortages possible at some pumps, warns ASDA – Guardian
How Trump and the oil price move in sync [Charts] – BBC
Reminder: the state pension age rises in April – Which
Buying UK housing most affordable since 2015 on price-to-earnings basis… – ONS
…as London house prices drop again… – City AM
…but rents are at an all-time high relative to incomes – Sky
Final candidates for seven new towns named – BBC
SpaceX’s mooted IPO valuation is in another orbit – Sherwood
Government defends landlord tax hikes as ‘fairer’ system – Property 118
FCA launches later life mortgage [a.k.a. equity release] study – Mortgage Strategy
Who ate all China’s stock market returns? [Paywall] – FT
Products and services
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The savings accounts that will pay you up to 5% – Which
How to swap houses for your holidays – Guardian
Don’t rely on AI to find you the best savings deal – Which
Get up to £3,000 cashback when you open or switch to an Interactive Investor SIPP. Terms and fees apply, affiliate link – Interactive Investor
HSBC, Barclays, Nationwide, and Halifax hike mortgage costs – Yahoo Finance
Five-year mortgages now cheaper than two-year fixes again – Mortgage Strategy
Fixed-rate mortgages go above 5.5%, but 4% trackers are available – This Is Money
Get up to £1,500 cashback when you transfer your cash and/or investments to Charles Stanley Direct through this affiliate link. Terms apply – Charles Stanley
Natwest switch offer: £150, or £250 for Premier account – Be Clever With Your Cash
What are passkeys and why should you use them for security? – Oblivious Investor
The best and worst family deals at major UK attractions – Be Clever With Your Cash
Loft-style apartments for sale, in pictures – Guardian
Comment and opinion
Could the triple-lock be scrapped, and should it be? – This Is Money
Index funds work – Money Changes Everything
Echoes of history: what the oil shock means for your money [Paywall] – FT
Seven lessons from ‘enoughfluencers’ on how to live a simpler, happier life – Guardian
Yes you can beat the market by avoiding its worst days. But you won’t – Morningstar
Why are young people taking so many unwise financial risks? – Bloomberg Advisor Perspectives
Safe until crisis: what 300 years of wars reveals about government debt – CEPR
Your financial past isn’t true. Neither is your future – The Net Worthwhile Weekly
The quiet transformations that separate investors from stewards – Bogumil Baranowski
How to compare well – Mr Stingy
The woes of managing money for a friend or relative – Financial Samurai
Hendrik Bessembinder has updated his influential stock return study [Research] – SSRN
Naughty corner: Active antics
The big problem with UK investment trusts – City AM
VCTs brace for record season after ‘bonkers’ tax relief cut – This Is Money
The reality of setting up as a solo investment advisor – Flyover Stocks
Ex-US markets look a good bet for value investors… – Verdad
…as Verdad’s founder Dan Rasmussen warns on private equity and more – Arena
In Elon Musk’s mind, SpaceX and Tesla have already merged – Sherwood
Tetra Pak: the shape of innovation – Quartr
Kindle book bargains
The End of Reality by Jonathan Taplin – £0.99 on Kindle
Boomerang by Michael Lewis – £0.99 on Kindle
Money Men by Dan McCrum – £0.99 on Kindle
Economica by Victoria Bateman – £0.99 on Kindle
Or pick up one of the all-time great investing classics – Monevator shop
Environmental factors
Britain sets new wind power generation record – RE News
Green energy enquiries surge as households fear price spike – This Is Money
Plug-in solar panels to become legal in the UK – Which
Evan Davis: heat pumps work for me – BBC
Earth’s climate increasingly out of balance – World Meteorological Organisation
The carbon burden of US companies – Klement on Investing
An unstoppable mushroom is tearing through North American forests – BBC
Robot overlord roundup
So long, Sora – Spyglass
Human musicians are doomed – Klement on Investing
Inside China’s robotics revolution – Guardian
There will be no permanent underclass – Of Dollars and Data
Not at the dinner table
The world’s policeman is on the take – New York Times [h/t Abnormal Returns]
Treason in the futures market – Paul Krugman
There isn’t always a ‘long arc’ of morality – Noahpinion
Democracy watchdog finds Trump aiming for dictatorship – Guardian
There’s an information void at the heart of the Iran war – Bloomberg
The voter fraud fraud – The Bulwark
Off our beat
Cheap drones are reshaping the war in the sky – Reuters
Five years of lessons from running a bookstore – Ryan Holiday
“I escaped North Korea with my mum. But…” – BBC
The clock in our genes – Aeon
Scientists identify a speech trait that foreshadows cognitive decline – Science Alert
The indirect – and sometimes surprising – benefits of vaccines – Stat
Google search tips and hacks – Card Catalog
And finally…
“Human beings have a remarkable ability to accept the abnormal and make it normal.”
– Andy Weir, Project Hail Mary
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