Multiple NS&I Guaranteed Growth Bonds

truckid

Looks like I will settle on the NS&I Guaranteed Growth Bonds, I wanted to save for about 9 months, and this is the best paying 1 year with minimum penalities if I withdraw before maturity (90 days).


Long story short, I want to make deposits from 2 seperate debit cards, you can only add to one bond once the paperwork comes through (can take couple of weeks), by then the rate will probably have dropped.

My only option is to open two seperate bonds online, I dont mind doing this but the guys at the NSandI didnt seem keen at all. They were strongly advising me not to, i.e. it will cause hassle, more background checks, more paperwork required, take longer to process etc etc.

It seems that they were trying to put me off, as it would cause more hassle and paperwork for them, my concern is that I open these bonds asap i.e. before the rate drops.

I have a fairly good credit rating and I understand that opening a number of accounts could affect it, but surely in this day and age of people chasing the best savings rates, this happens all the time.

My plan was to open an bond tonight, wait for email confirmation and then open the next one (hopefully in the next day or two). Is there anything I should be aware of ?

Any advice appreciated

cvd

I opened mine by phone. It was very easy and very efficient.
Just quoted my debit card details. A couple of days later the money was withdrawn from my account and a few days later I received a form to sign because they needed a copy of my signature. I returned the form and about a week later I received the bond.

It is true the phone call took some time because the lady at NS&I was clearly obliged to read out various terms and conditions of the bond and check that I understood. But the call is FREE!

PS I never have any problem with electronic verfication because I have lived at the same address for years, I am on the electoral register and I have had some Premium Bonds for years. That may have made opening the bond simpler.

truckid

Sorry, I didn't mention it properly in my original post.

What I wanted to know, is that if there would be 'issues' if I opened two seperate bonds. Would opening two delay both ? Would it adversly affect my credit rating ?

Thanks

withnell

I don't see how it would affect your credit rating as the only search that would be made is an identity search, as its not an application for credit.

cvd

Just to add to my previous post - at the end of the phone call, I understood the bond was "open". The lady at NS&I stressed the money had to be ready in my current account because they would initiate the transfer to them at the end of that working day and I had 30 days from the date of the phone call to submit my signature or the money would be returned.

So presumably I could have opened another the next day. Incidentally, I was not given the option of adding to the bond.

But I suppose it depends if they can easily verify your identity.

PS Just checked the paperwork. The date of investment given on my bond is the date of my phone call (Jan 2, a Friday). The money left my bank account on Jan 5 (Monday). I received the actual bond certificate on Jan 13 (In that week I received the form for my signature and returned it.).

moonshine

they've dropped all their rates on these today so if you hadn't already opened them it looks a bit late for a decent rate now.

soulsaver

I know you said it was a longer story, but for the avoidance of doubt: You have ruled out making a transfer between your bank accounts & then using just one debit card? If your banks are related or both use Faster Payments you could have funds in the one account in hours if not mins.

Lansdowne

As Moonshine has said the Guaranteed Growth bonds rates have been reduced, slashed or even massacred.

Instead of 4.20%, it is now 2.35% for 1 year. (although since the rates were unchanged from last year I suppose it was going to happen)

Just a pity they did it on the day my Northern Rock one year fixed bond matured! (and of course everyone else who bought the same issue a year ago)