Sticking with NS&I growth bonds?

vigman

My one year NS&I growth bond matures soon and they are offering existing savers 2.2%, 2.75%, 3.25% and 3.9% for 1-4 year bonds.

Anyone taking up their offer?

TIA

Vigman

vigman

.....error : there is no 4 yr bond it jumps from 3yr to 5yr rates!

Vigman

vigman

One more query. There is a 90 day withdrawal/closure interest penalty on all accounts as far as I can see, so is it best to nominate the 5yr 3.9% account however long you intend to save for??

Must be a catch....Vigman??

D1zzy

Not me - don't feel likefixing for more than 2 years at the mo; there are beter rates elsewhere; and their 1 and 2 year rates are below some of the instant access rates currently available

plodder73

Hi I have two NSI bonds taken out last year, one has just come to an end and I got the stuff through but automatically dismissed it because the appalling rates. I put that into an instant access ING paying 2.8%. If what you have read is correct I may consider the 5year one with the next one that matures though.

A._Badger

I baled out and put mine with the Post Office (now with the full UK guarantee, apparently).

musehead

I withdrew as well but didn't notice the 5 year 3.9% option. This is not a bad deal if you can withdraw with 90 days penalty.

soulsaver

musehead wrote: »

I withdrew as well but didn't notice the 5 year 3.9% option. This is not a bad deal if you can withdraw with 90 days penalty.

Just one point - the 3.9% is 3.12 after basic tax;higher rate tax payers have to pay the additional through their self assessment (so 40% = 2.34%).
So?
The 'penalty' is deducted gross, and is NOT tax deductable. May be still a good decision, but maybe not quite the 'no brainer' it seems on first appearance.

fatbob10

narrr - withdrew mine - would rather have it sat in instant access with the post office or similar than what they were offering to fix.

2CBG

You can withdraw at any time with a 90 day interest penalty.

So going for the 5year at 3.9% and withdrawing at the end of the 1st year gives you about 2.9%, after 2 years about 3.4%. Quick calculations only so might not be accurate.

Seems to me that going for the 5 year at 3.9% is possibly the most flexible option and allows me to move out if interest rates improve in a year or two's time.

vigman

2CBG wrote: »

You can withdraw at any time with a 90 day interest penalty.

So going for the 5year at 3.9% and withdrawing at the end of the 1st year gives you about 2.9%, after 2 years about 3.4%. Quick calculations only so might not be accurate.

Seems to me that going for the 5 year at 3.9% is possibly the most flexible option and allows me to move out if interest rates improve in a year or two's time.

Hi can anyone confirm that I, and 2CGB, have read the T&Cs correctly for this NS&I bond? If so, the last statement seems to add up to the good deal which I wasn't totally confident I had got right!

TIA

Vigman