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NS&I Maturing Bond
NigelH1205
Posts: 1 Newbie
I took out a NS&I 65+ Guaranteed Growth Bond in January 2015. I invested £10,000 at the interest rate of 4% Gross/AER.
I expected the maturing bond to be worth £11248.64 which is 3 years compounded at 4% with interest calculated annually but the letter tells me the maturing fund is £11,163.29.
Can anybody explain why?
I expected the maturing bond to be worth £11248.64 which is 3 years compounded at 4% with interest calculated annually but the letter tells me the maturing fund is £11,163.29.
Can anybody explain why?
0
Comments
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Are the dates exactly 3 years? There seems to be a shortfall of around 80 days otherwise.0
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Is the amount the final total, or the running total at the date of the letter?0
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Go to your account online, look up transaction history. You will see tax deducted.0
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The interest on the GGB is taxable.
Tax would have been deducted on the payment of interest made in January 2016 - interest has been paid gross in January 2017 and will be paid gross on maturity in 2018.0
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