NS&I 3 Year Bond 2.20%

RG2015
RG2015 Posts: 5,904 Forumite
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in Savings & investments
I have just noticed that NS&I are now offering a 3 year bond at 2.20% with a maximum of £1 million per person. This is in addition to the 3 year 2.20% bond that is limited to £3,000 per person.

I assume that this is new as it it not listed on the main MSE savings page. It is though surprising that there has been no publicity about this.

There are also some other new 1 and 3 year bonds with quite good rates.
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Comments

  • caveman38
    caveman38 Posts: 1,297 Forumite
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    RG2015 wrote: »
    I have just noticed that NS&I are now offering a 3 year bond at 2.20% with a maximum of £1 million per person. This is in addition to the 3 year 2.20% bond that is limited to £3,000 per person.

    I assume that this is new as it it not listed on the main MSE savings page. It is though surprising that there has been no publicity about this.

    There are also some other new 1 and 3 year bonds with quite good rates.



    The earlier one Investment Guaranteed Growth Bond Issue 1 as you say limited to £3K. This new one is just Guaranteed Growth Bond as you say £1M limit. It says Issue 56/62.
    Were there earlier issues then?
  • RG2015
    RG2015 Posts: 5,904 Forumite
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    caveman38 wrote: »
    The earlier one Investment Guaranteed Growth Bond Issue 1 as you say limited to £3K. This new one is just Guaranteed Growth Bond as you say £1M limit. It says Issue 56/62.
    Were there earlier issues then?
    I have just checked the NS&I website and they list all their earlier issues. Issue 55 was launched on 20th November and was also 2.20%.

    There is a link below to a PDF with historical rates.

    https://www.nsandi.com/files/published_files/asset/pdf/historical-interest-rates.pdf
  • caveman38
    caveman38 Posts: 1,297 Forumite
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    RG2015 wrote: »
    I have just checked the NS&I website and they list all their earlier issues. Issue 55 was launched on 20th November and was also 2.20%.

    There is a link below to a PDF with historical rates.

    https://www.nsandi.com/files/published_files/asset/pdf/historical-interest-rates.pdf



    Was there a low limit with the earlier one. I don't understand why I didn't invest in it when I did with the IGGB and was disappointed with the £3K limit.
  • capital0ne
    capital0ne Posts: 872 Forumite
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    Better than nothing but still losing 0.7% due to inflation - go for stocks and shares instead
  • RG2015
    RG2015 Posts: 5,904 Forumite
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    caveman38 wrote: »
    Was there a low limit with the earlier one. I don't understand why I didn't invest in it when I did with the IGGB and was disappointed with the £3K limit.
    I have just seen the note on the historical listing which says that no issue was on general sale from 11 Dec 2009 to 30 Nov 2017.
  • RG2015
    RG2015 Posts: 5,904 Forumite
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    capital0ne wrote: »
    Better than nothing but still losing 0.7% due to inflation - go for stocks and shares instead
    Thank you for your response but some people prefer cash and others have mixed portfolios which include cash and this new offering is a good cash option.

    When the NS&I bond was launched there was a favourable response to the 2.20% rate but great disappointment that it was limited to £3,000 per person. From 30th November there is a significant change with a new bond paying the same rate with a much higher limit.

    Clearly it does not match inflation but this has nothing to do with choosing to save rather than invest.
  • ChesterDog
    ChesterDog Posts: 1,112 Forumite
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    RG2015 wrote: »
    I have just noticed that NS&I are now offering a 3 year bond at 2.20% with a maximum of £1 million per person. This is in addition to the 3 year 2.20% bond that is limited to £3,000 per person.

    I assume that this is new as it it not listed on the main MSE savings page. It is though surprising that there has been no publicity about this.

    There are also some other new 1 and 3 year bonds with quite good rates.

    Thank you for highlighting this.

    I almost didn't eveh bother to open this thread, because I expected it to have the £3k limit.
    I am one of the Dogs of the Index.
  • OldMusicGuy
    OldMusicGuy Posts: 1,758 Forumite
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    capital0ne wrote: »
    Better than nothing but still losing 0.7% due to inflation - go for stocks and shares instead
    Not quite correct. Latest forecast from the OBR states: "We expect CPI inflation to peak in the current quarter and then fall back to – and for a while slightly below – the Government’s 2 per cent target over the subsequent year and a half,"

    So in the short term at least this is a zero risk, slightly above inflation investment. It could be a great component of a balanced investment portfolio, especially if (like me) you are approaching the decumulation phase of your life and are looking to lock in and spend gains rather than create them. I'll probably be using this as part of a "ladder" of rolling 5 year cash investments.

    The main risk here is that within three years interest rates will rise so there will likely be slightly better offers available in 18 to 24 months.
  • RG2015
    RG2015 Posts: 5,904 Forumite
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    OldMusicGuy wrote: »
    Not quite correct. Latest forecast from the OBR states: "We expect CPI inflation to peak in the current quarter and then fall back to – and for a while slightly below – the Government’s 2 per cent target over the subsequent year and a half,"

    So in the short term at least this is a zero risk, slightly above inflation investment. It could be a great component of a balanced investment portfolio, especially if (like me) you are approaching the decumulation phase of your life and are looking to lock in and spend gains rather than create them. I'll probably be using this as part of a "ladder" of rolling 5 year cash investments.

    The main risk here is that within three years interest rates will rise so there will likely be slightly better offers available in 18 to 24 months.
    I would have thought a bigger risk is to put too much faith in the OBR. :)
  • talexuser
    talexuser Posts: 3,499 Forumite
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    RG2015 wrote: »
    I would have thought a bigger risk is to put too much faith in the OBR. :)

    I agree, their forecasts have been consistently over optimistic with unreliable predictions compared to the more independent IFS.

    http://www.telegraph.co.uk/business/2016/11/24/four-times-obr-has-wrong/

    https://www.theguardian.com/business/2012/oct/16/obr-poor-forecasting-record-office-budget-responsibility
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