IBM wins National Savings & Investment bank tech and ops deal

IBM has won a contract worth £34.2 million (c $41.2 million) as part of a tranche of technology upgrade deals from the UK's National Savings & Investment bank set to be worth hundreds of millions. The bank, which is an Executive Agency of the UK's Chancellor of the Exchequer has awarded Big Blue the contract for "Digital …

[elsergiovolador]

A scam?

If you look at NS&I interest rates, they are well below the inflation rate.

So what is the point of that service?

[Hans Neeson-Bumpsadese]

Re: A scam?

In the current climate, are there many banks or building societies with run-of-the-mill savings accounts that will keep pace with inflation?

I guess if you invest in Premium Bonds then you could get an inflation-busting return on your invsetment, but that's very much in the lap of the gods ERNIE.

[elsergiovolador]

Re: A scam?

I am not aware of any tbh, but the name of the bank is misleading and they don't make people aware that they are actually losing money with them.

[Anonymous Coward]

Re: A scam?

The investment here is not for your benefit, rather it's for the government. Like buying into GILTS, it's a way for you to let the government have some of your money for a period of time for them to invest themselves.

[elsergiovolador]

Re: A scam?

Again - have you visited their website? You don't see happy government officials praising people wasting their savings on their vanity projects.

[Anonymous Coward]

Re: A scam?

Can you find me any investment that is keeping pace with inflation?

[elsergiovolador]

Re: A scam?

You can look into Exchange-Traded Funds (ETFs).

[Graham 32]

Re: A scam?

The value of your investment may go down. Neither guaranteed to keep up with inflation nor guaranteed to be better than NS&I's interest rates. So back to your original question: the point of NS&I's savings accounts to is to increase your money in a risk-free way.

[elsergiovolador]

Re: A scam?

the point of NS&I's savings accounts to is to increase your money in a risk-free way.

Exactly, and they fail on that front because the return is below inflation, which means you are losing money always. They should just close the thing.

For ETF you need to get professional advice or do solid research, but you can't go wrong with it long term.

[Hans Neeson-Bumpsadese]

Re: A scam?

ISAs (the acceptable, government-approved face of tax avoidance) can keep up with or exceed inflation. Not all ISAs are managed equally though, so it's possible to lose out. Touch wood, mine seems to be doing OK.

[elsergiovolador]

Re: A scam?

Stocks & Shares ISA particularly.

[Roger Kynaston]

what about ERNIE?

Will it run as an emulation in some big blue cloud?

[Anonymous Coward]

Re: what about ERNIE?

If you can imagine it emulating a 3 legged donkey, then yes.

[Spoobistle]

Re: what about ERNIE?

Can you emulate a pure random number generator without turning it into a pseudo-random number generator? That would make it easier to ensure the big wins go to the more deserving chums. Black helicopter icon clearly needed!