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    • RG2015
    • By RG2015 1st Dec 17, 9:49 PM
    • 588Posts
    • 306Thanks
    RG2015
    When is NS&I 3yr Bond Interest taxable?
    • #1
    • 1st Dec 17, 9:49 PM
    When is NS&I 3yr Bond Interest taxable? 1st Dec 17 at 9:49 PM
    When is the interest on the 3 Year NS&I Guaranteed Growth Bond added for PSA calculation purposes? If the bond runs to full term the interest on £3,000 will be £202.38

    Is this potentially taxable when the bond matures or can it be split over the 3 or 4 tax years covered?

    I have tried researching this but cannot find a definitive answer.
Page 2
    • RG2015
    • By RG2015 2nd Dec 17, 1:00 PM
    • 588 Posts
    • 306 Thanks
    RG2015
    I am not so sure. I use MS Money and keep it up to date on a monthly basis and I would still have problems trying to forecast interest payments that are paid on a annual basis.I am not looking a gift horse in the mouth but I think quite a few people on tight budgets will be upset when their tax code gets reduced year on year.
    Originally posted by Terry98
    Perhaps, but there are not that many on tight budgets who would breach their PSA limit.

    I have an Excel spreadsheet with 12 columns for the months April to March plus an extra column for 1st to 5th April. My longest saver is 3 years so I have 4 tabs on the spreadsheet taking me to 5th April 2021.
    • Terry98
    • By Terry98 2nd Dec 17, 1:38 PM
    • 848 Posts
    • 1,466 Thanks
    Terry98
    Perhaps, but there are not that many on tight budgets who would breach their PSA limit.
    Originally posted by RG2015
    You are most probably right.

    Anybody exceeding the PSA limit should have sheltered it in an cash ISA
    • Dazed and confused
    • By Dazed and confused 2nd Dec 17, 1:42 PM
    • 1,939 Posts
    • 872 Thanks
    Dazed and confused
    Surely that depends on whether you want to avoid paying tax or get the most return from your savings?

    Better to have 2.2% taxable at 20% than say 1.5% from an ISA
    • Terry98
    • By Terry98 2nd Dec 17, 3:31 PM
    • 848 Posts
    • 1,466 Thanks
    Terry98
    I was assuming cash ISA rates were the same as ordinary savings accounts which was the case a few years ago before savers were squeezed out of the market!
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