NS&I 1 yr fix no loss?

vigman

The Daily Mail is making a great deal about upset savers who can't invest now the 1 yr Growth Bond has been withdrawn by NS&I after 24 days, but seem to miss the point that Martin and MSE make here that you can still buy into the existing 3 or 5 year fixes but still get your money out with the 90 days loss of interest!!?

Vigman (whose just put his wife's one yr fix returned money into a three year one!)

RayWolfe

The Daily Mail thrives on upset, so I wouldn't worry about it.

D1zzy

vigman wrote: »

The Daily Mail is making a great deal about upset savers who can't invest now the 1 yr Growth Bond has been withdrawn by NS&I after 24 days, but seem to miss the point that Martin and MSE make here that you can still buy into the existing 3 or 5 year fixes but still get your money out with the 90 days loss of interest!!?

Vigman (whose just put his wife's one yr fix returned money into a three year one!)

If you do the 3 year 1 @ 4.4% and withdraw early, after the penalty the equivalent rates are approx:-
1 year - 3%
2 years 3.72%

Mr_Mumble

A family member applied for this a week prior to the (Wednesday 18th?) cut-off but has had the cheque returned. I guess the Royal Mail may have taken 5-6 working days to deliver something with a 1st class stamp on it...

MarkyMarkD

So why would anyone do the 2 year or 3 year and withdraw early? Those rates calculated can be easily beaten.

D1zzy

MarkyMarkD wrote: »

So why would anyone do the 2 year or 3 year and withdraw early? Those rates calculated can be easily beaten.

I guess if you've got a "load" and are fed up for trying to find homes for it in £50k lots, avoiding banks/bs that fall under the same umbrella - there's an appeal to being able to dump it in 1 place with 100% guarantee - even if its not quite the best rate available.

On that basis 3 yrs @ 4.4% is probably not bad - lots have been doing 2 yr fixed with no getout at 4'n a bit %