NS&I Investment Guaranteed Growth Bond - Incorrect information in MSE Briefing

teddysmum

Neil_Jones wrote: »

Actually now I've crunched some numbers you get the same interest back whether you tie up £3k in one go or make it up through a series of smaller bonds.

One £3k bond on its own is £3000 + 2.2% = £3066 + 2.2% = £3,133.45 + 2.2% = £3,202.38.

One £250 bond is £250 + 2.2% = £255.50 + 2.2% = £261.12 + 2.2% = £266.87 (rounded up), thus gains interest of £16.87. £16.87 x 12 bonds to max out at £3k per issue = total interest £202.44.

One £1000 bond is £1000 + 2.2% = 1022.20 + 2.2% = £1044.48 + 2.2% = £1067.46, thus gains interest of £67.46. £67.46 x 3 bonds to max out at £3k per issue = £202.38.

Of course this assumes the interest rate remains at 2.2% when you buy.

Of course £3000 gates the same interest as three lots of £1000, provided it's al invested within the same interest offer (They say the offer can be changed, but is fixed once a bond is purchased.)


You must have been a maths teacher's nightmare. (Wrong use of = signs)


eg £3000+2.2% does not equal £3066 plus 2.2%
£3000+ 2.2% more=£3066
£3066+2.2% more=£3133.45 etc


or 102.2% of £3000=£3066
102.2% of £3066=£3133.45 etc

ColdIron

soulsaver wrote: »

Except apparently conflicting with the Ts&Cs in 'Your Questions Answered:

https://www.nsandi.com/investment-guaranteed-growth-bonds

"How long will the Investment Guaranteed Growth Bond be on sale for?
The Bond will be on sale for 12 months until 10 April 2018".

Trust HMG to add confusion to the mix...

I don't see any confusion. They will be on sale until April 2018, but the Issue 1 that offers 2.2% can be withdrawn at any time and be replaced with a new issue offering a different rate

soulsaver

ColdIron wrote: »

I don't see any confusion. They will be on sale until April 2018, but the Issue 1 that offers 2.2% can be withdrawn at any time and be replaced with a new issue offering a different rate

I'm not saying you're wrong - just that not everyone reads the fine print of the T&Cs, especially when their 'questions are answered'...

There will be wailing and gnashing.. and justifiably so IMO.

richardmk

The guidance on this site is still incorrect

You can keep adding to the account through the full three-year term until you hit the maximum £3,000. But the sooner you get your money in, the more time it has to earn interest.

You cannot add to the same account. If you open it with £100 you cannot subsequently add £2900 and expect the account to mature with £3000 to withdraw. Each part deposit will be a separate 3 year account.

isasmurf

richardmk wrote: »

The guidance on this site is still incorrect



You cannot add to the same account. If you open it with £100 you cannot subsequently add £2900 and expect the account to mature with £3000 to withdraw. Each part deposit will be a separate 3 year account.

Have you emailed them to bring it to their attention?