My mom passed on to the great beyond in December. In going via her affairs I discovered a Post Office Savings book. It had a balance of £1, 1 shilling and seven pence in 1954.
I’ve despatched this to National Savings and Investments and it has spoke back with a letter pronouncing that the worth is now £four.88.
I to find it rather exhausting to consider that it has made so little achieve after 64 years, do you suppose that is proper or has it made a mistake? Ok.H, by way of e mail.
Royal sum? My mom’s financial savings book had a balance of £1, 1 shilling and seven pence – what’s it worth in 2018? Pictured, the Queen’s Coronation in 1953, the yr the account was once opened
Lee Boyce, client affairs editor at This is Money, replies: This is perhaps a commonplace situation around the nation – discovering old financial savings books with balances in from many moons in the past.
You kindly photocopied the financial savings book, which was once an account opened in a Post Office in Greenford, within the London Borough of Ealing in 1953 – the yr Queen Elizabeth II had her Coronation.
I used the This is Money inflation calculator to peer how much £1, 1 shilling and seven pence can be worth lately – and the solution is £28.67, a way off the financial savings enlargement.
So how did National Savings figure out it’s worth £four.88?
Post Office Savings books had been renamed National Savings Ordinary Accounts in 1969, therefore why it’s NS&I coping with the topic.
From a distinct time: The Post Office financial savings book discovered via the reader
NS&I investigated. A spokesman mentioned: ‘The buyer’s account was once opened in 1953, and next hobby provides and capital withdrawals intended that on the finish of December 1970, the balance was once £1, 19 shillings and seven pence.
‘In 1971, decimalisation intended that this balance was once transformed to £1.98 and hobby was once calculated via various interest rates, added once a year.
‘This was once between 1971 and 2008. From right here, the client’s funding was once moved to the Residual Account.
‘The rate of interest for the Residual Account is recently zero.1 consistent with cent.’
He added that once a buyer cashes in an funding that was once being held within the Residual Account, its price is calculated via including zero.1 consistent with cent for every yr it was once held there.
When you cashed on your mom’s financial savings book, the remaining balance was once £four.88. This took under consideration the hobby that was once earned between 1953 and 2008 and the zero.1 consistent with cent building up for annually from 2008 onwards.
Lee Boyce provides: I calculate this as a normal annual go back of one.96 consistent with cent since 1971.
This compares to overall inflation of one,321.74 consistent with cent over the similar period of time (once more, labored out with our inflation calculator). This averages out at five.78 consistent with cent a yr over the 46-year length.
I assume it is going to turn what inflation can do in your investments and financial savings if you do not do one thing to offer protection to them.
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