NS&I Guaranteed Growth Bonds @ 4.20 % fixed

drink-stella

NS&I Currently have 1 year Guaranteed Growth Bonds paying 4.20 % fixed. If you want 3 or 5 year terms they pay 4.00 % fixed

100% security!

useless

hi, does anyone have one of these?

any problems with it?

looking to open one (if they haven't disappeared already)

lkmc01

:eek:

the n s and i's guaranteed growth bond, is it a savings account or an investment?

I am very confused about the tax on interest in this account.

I don't pay tax, but I think for this account I will have to - strange :eek:

I have rung them up and they say that for this account I have to pay tax and then claim it back.

Has anyone else done this?

Or has anyone registered for gross interest before their guaranteed growth bond closed?

If it is correct that I must be first charged tax and then claim it back, how do I claim it back and how long does it take?

Also why do I have to pay it in the first place.

alanq

If it is correct that I must be first charged tax and then claim it back, how do I claim it back and how long does it take?

Also why do I have to pay it in the first place.

Normally if one has income less than a certain amount, and thus owes no income tax, one can complete a form R85 and hand it to a bank or building society to have interest paid without deduction of tax. For reasons I cannot guess NS&I do not follow that arrangement.

To reclaim tax that has been overpaid, or paid when none is due, you need to complete a form R40 and send it to HMRC. In my experience it takes 1-2 months to process.
http://www.hmrc.gov.uk/incometax/tax-free-interest.htm