reward Bond about to mature

Katykat

I have had £5000 invested in Nationwide members reward Bond for 3 years. It's due to mature on 7/4/06 for £5626. N,wide says I can reinvest it at the same rate, 5.05% or draw all or part of it. I have not used up my tax free ISA this year, but this bond matures too late for that and I think I'll be able to use my ISA allowance next year without this money. Is this still a good investment? This money is part of my pension fund so I want a NO risk investment.

codetown

You have to decide if the rate offered to you for the next fixed period (which you did not mention) is good for your investment strategy.

In general:
a) if you can spare some money it is convenient to you to put as much as you can into ISA (both this year and next), as accumulates tax-free sums and corresponding interests.

b) Nationwide is pretty solid and the Members' Rewards bonds are fixed rate investments with pretty low risk (only risk I see is if Nationwide goes bankrupt, which is extremly unlikely).

c) Not sure what you mean about the pension investment. If you have access to a pension scheme, then that is also a pretty good way to invest money with some direct saving on taxes. Of course be careful about where the money ends up.

caveat_emptor

Katykat wrote:

I have had £5000 invested in Nationwide members reward Bond for 3 years. It's due to mature on 7/4/06 for £5626. N,wide says I can reinvest it at the same rate, 5.05% or draw all or part of it. I have not used up my tax free ISA this year, but this bond matures too late for that and I think I'll be able to use my ISA allowance next year without this money. Is this still a good investment? This money is part of my pension fund so I want a NO risk investment.

If you have a Nationwide Flexaccount you could get a short term 'authorised overdraft' to finance this years ISA and then pay it off when your bond matures.
Details of charges on the Nationwide website.

Katykat

Codetown, I mentioned the rate of 5.05% which is the same as I have received for tha last 3 years. It seems to be the best rate NW have to offer, albeit taxable. About the pension. This money was part of my OH's lump sum pension that he got when he was made redundant. We invested this as he did get another job, and he wants to leave this money to mature until he is 65. He's 53 now. Thanks CE for the advice to use short term overdraft. I had thought about that, but there is a part of me that trembles a bit when I am greatly overdrawn. Think it goes back to the days when i didn't have a penny to spare.

freesave

Depending on your circumstances, you may wish to consider the Barclays stocks and shares ISA. Worth looking at the Barclays site at www. barclays.com to see if it suits you.

dunstonh

freesave wrote:

Depending on your circumstances, you may wish to consider the Barclays stocks and shares ISA. Worth looking at the Barclays site at www. barclays.com to see if it suits you.

Don't take this the wrong way but what on earth does Barclays offer that makes even the tiniest bit desirable?

Just in case I had missed a miracle and there was a bank product with good terms, I popped onto Barclays site and found a high charging contract with a limited fund range which is insufficient for any real investing. Their product is typical for low quality advisors with low investment experience customers.

Its an awful suggestion freesave. Sorry.

freesave

no offence taken. Learn something everyday!!