Are National Savings and Investment Income Bonds worthwhile?

EltonJohnFan

Hi all,

I was recently left £6,000 in the will of a very elderly relative, war veteran who I greatly admired and respected. I'm still trying to come to terms with the shock of losing him as I loved him lots, don't think he could have realised just how much his money will help me. My father happened to mention just there that he'd saved with National Savings and Investments for a long time and that I'd do well to follow in his footsteps and that I should think about opening "Income Bonds" with them, what do you think? is this a good place to keep my money? is it safe? I intend to build up the amount of "Income Bonds" I hold as time goes on and I become more financially secure but for now, would this be a good place to start? I'm keeping this question simple for I'm sure you'll tell me all I need to know and I'm often overwhelmed at the fantastic level of support I receive when posting on these forums, thank you for that

ManAtHome

The Income Bonds are just instant access savings which credit interest monthly - as with most NSI products, interest rates are dire (1.45% a year for less than 25k, interest is taxable).

I'd have a look at bank/building society accounts - you can easily beat NS&I. Consider a cash ISA if you're a taxpayer and don't have one already (great list here http://forums.moneysavingexpert.com/showthread.html?t=401374 ).

List of instant access accounts here http://www.money.co.uk/savings-accounts/instant-access-savings.htm

Sceptic001

NS&I are the safest place to put your savings as they are 100% backed by HM Treasury. Unfortunately as ManAtHome says, their rates are currently very poor, as they have exceeded their sales target for this year. Consequently, their best-selling product, index-linked savings certificates, have been withdrawn from sale. They may come back some time next year. In the meantime, you need a good instant access bank or building society account. Here are some ideas: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#bestbuys

vaporate

Premium bonds?

No regular interest per month though but possible chance of winning money evey month.