NS&I 3 Year Bond 2.20%
Comments
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OldMusicGuy wrote: »So in the short term at least this is a zero risk, slightly above inflation investment.
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.0 -
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.0 -
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.0 -
It's the Guaranteed Growth Bonds (the one in orange)
https://www.nsandi.com/guaranteed-growth-bonds0 -
Many thanks for that - I was searching the NS&I site but must have missed it.0
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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?
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 birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
chucknorris wrote: »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?0
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chucknorris wrote: »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?
- marketing
- any mathematician will tell you growth is a signed quantity, and can be negative
- 'Guaranteed' may just refer to being backed by HM Treasury.
- at least this one doesn't have 'investment' in the name.
- some of us don't pay 40% tax - or 20% tax either.
Eco Miser
Saving money for well over half a century0 -
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As someone commented on the article, surely it is better to take the 3 year option and cash in after year and lose 90 days interest. 0.75 of 2.20 is greater than 1.5.0
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