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  • FIRST POST
    • RG2015
    • By RG2015 1st Dec 17, 5:43 PM
    • 628Posts
    • 327Thanks
    RG2015
    NS&I 3 Year Bond 2.20%
    • #1
    • 1st Dec 17, 5:43 PM
    NS&I 3 Year Bond 2.20% 1st Dec 17 at 5:43 PM
    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.
Page 1
    • caveman38
    • By caveman38 1st Dec 17, 5:59 PM
    • 891 Posts
    • 287 Thanks
    caveman38
    • #2
    • 1st Dec 17, 5:59 PM
    • #2
    • 1st Dec 17, 5:59 PM
    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.
    Originally posted by RG2015


    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
    • By RG2015 1st Dec 17, 6:08 PM
    • 628 Posts
    • 327 Thanks
    RG2015
    • #3
    • 1st Dec 17, 6:08 PM
    • #3
    • 1st Dec 17, 6:08 PM
    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?
    Originally posted by caveman38
    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
    • By caveman38 1st Dec 17, 6:26 PM
    • 891 Posts
    • 287 Thanks
    caveman38
    • #4
    • 1st Dec 17, 6:26 PM
    • #4
    • 1st Dec 17, 6:26 PM
    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
    Originally posted by RG2015


    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
    • By capital0ne 1st Dec 17, 6:47 PM
    • 148 Posts
    • 80 Thanks
    capital0ne
    • #5
    • 1st Dec 17, 6:47 PM
    • #5
    • 1st Dec 17, 6:47 PM
    Better than nothing but still losing 0.7% due to inflation - go for stocks and shares instead
    • RG2015
    • By RG2015 1st Dec 17, 7:31 PM
    • 628 Posts
    • 327 Thanks
    RG2015
    • #6
    • 1st Dec 17, 7:31 PM
    • #6
    • 1st Dec 17, 7:31 PM
    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.
    Originally posted by caveman38
    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
    • By RG2015 2nd Dec 17, 10:06 AM
    • 628 Posts
    • 327 Thanks
    RG2015
    • #7
    • 2nd Dec 17, 10:06 AM
    • #7
    • 2nd Dec 17, 10:06 AM
    Better than nothing but still losing 0.7% due to inflation - go for stocks and shares instead
    Originally posted by capital0ne
    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
    • By ChesterDog 2nd Dec 17, 12:38 PM
    • 808 Posts
    • 1,475 Thanks
    ChesterDog
    • #8
    • 2nd Dec 17, 12:38 PM
    • #8
    • 2nd Dec 17, 12:38 PM
    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.
    Originally posted by RG2015
    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
    • By OldMusicGuy 2nd Dec 17, 1:04 PM
    • 207 Posts
    • 382 Thanks
    OldMusicGuy
    • #9
    • 2nd Dec 17, 1:04 PM
    • #9
    • 2nd Dec 17, 1:04 PM
    Better than nothing but still losing 0.7% due to inflation - go for stocks and shares instead
    Originally posted by capital0ne
    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
    • By RG2015 2nd Dec 17, 2:32 PM
    • 628 Posts
    • 327 Thanks
    RG2015
    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.
    Originally posted by OldMusicGuy
    I would have thought a bigger risk is to put too much faith in the OBR.
    • talexuser
    • By talexuser 2nd Dec 17, 3:00 PM
    • 2,304 Posts
    • 1,792 Thanks
    talexuser
    I would have thought a bigger risk is to put too much faith in the OBR.
    Originally posted by RG2015
    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
    • talexuser
    • By talexuser 2nd Dec 17, 3:12 PM
    • 2,304 Posts
    • 1,792 Thanks
    talexuser
    So in the short term at least this is a zero risk, slightly above inflation investment.
    Originally posted by OldMusicGuy
    In the short term this is a below inflation return with CPI now 3% and RPI 4%. It all depends how much and how long inflation falls below target 2% in the latter half of the term, which is a big if. The risk factor is the biggest draw for those interested.
    • OldMusicGuy
    • By OldMusicGuy 2nd Dec 17, 3:42 PM
    • 207 Posts
    • 382 Thanks
    OldMusicGuy
    Inflation has spiked due to the fall in Sterling. The effects of that seem to have worked through, hence the lower forecasts. IMO it's not a big if to see inflation going down to 2% or lower. That's the government's target and interest rates are on the way up. Of course, YMMV and no-one really knows for sure.

    I don't believe in measures like CPI and RPI anyway, because you can easily reduce your outgoings through lifestyle adjustments and clever purchasing. 2.2% with no risk looks pretty good to me, although there are other options.

    Of course, I still have a lot of money invested in the market. Like I said, this could be a good component of a balanced portfolio.
    • claire07
    • By claire07 2nd Dec 17, 4:28 PM
    • 494 Posts
    • 145 Thanks
    claire07
    I may be missing the obvious but could you please show a link to the new 3 year bond at 2.2% on the NS&I website. I can only find the one limited to £3000 which I already have.


    Many thanks.
    • ColdIron
    • By ColdIron 2nd Dec 17, 4:42 PM
    • 3,673 Posts
    • 4,420 Thanks
    ColdIron
    It's the Guaranteed Growth Bonds (the one in orange)
    https://www.nsandi.com/guaranteed-growth-bonds
    • claire07
    • By claire07 2nd Dec 17, 4:48 PM
    • 494 Posts
    • 145 Thanks
    claire07
    Many thanks for that - I was searching the NS&I site but must have missed it.
    • chucknorris
    • By chucknorris 2nd Dec 17, 4:52 PM
    • 9,345 Posts
    • 14,011 Thanks
    chucknorris
    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?
    Originally posted by caveman38
    What a strange name 'Guaranteed growth bond', how the hell did they come up with that? 2.2% less 40% tax = 1.32% net nominal growth, but less inflation = at least -0.5%! Guaranteed to lose in real terms bond' would have been far more apt. Or am I missing something?
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • RG2015
    • By RG2015 2nd Dec 17, 5:08 PM
    • 628 Posts
    • 327 Thanks
    RG2015
    What a strange name 'Guaranteed growth bond', how the hell did they come up with that? 2.2% less 40% tax = 1.32% net nominal growth, but less inflation = at least -0.5%! Guaranteed to lose in real terms bond' would have been far more apt. Or am I missing something?
    Originally posted by chucknorris
    Definitely a case of mis-selling. It will become known as the Govt GGB scandal and £billions will be paid paid out in compensation over the next 25 years bankrupting the government.
    • Eco Miser
    • By Eco Miser 2nd Dec 17, 5:57 PM
    • 3,230 Posts
    • 2,989 Thanks
    Eco Miser
    What a strange name 'Guaranteed growth bond', how the hell did they come up with that? 2.2% less 40% tax = 1.32% net nominal growth, but less inflation = at least -0.5%! Guaranteed to lose in real terms bond' would have been far more apt. Or am I missing something?
    Originally posted by chucknorris
    1. marketing
    2. any mathematician will tell you growth is a signed quantity, and can be negative
    3. 'Guaranteed' may just refer to being backed by HM Treasury.
    4. at least this one doesn't have 'investment' in the name.
    5. some of us don't pay 40% tax - or 20% tax either.
    Eco Miser
    Saving money for well over half a century
    • MSE Andrea
    • By MSE Andrea 5th Dec 17, 9:04 AM
    • 8,838 Posts
    • 21,147 Thanks
    MSE Andrea
    Hi all

    Our team's written a story with MSE's stance on how the new fixed savings bonds stack up.

    Could you do with a Money Makeover?


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