Re-new a N.S.& I Guaranteed Growth Bond?

ColdIron

The interest is paid annually

• Your Bond earns interest at the fixed rate every day. We add interest to the Bond on each anniversary of the date you bought it.

But it's the year of maturity that matters for tax reporting

• The interest you earn on your Guaranteed Growth Bond counts towards your Personal Savings Allowance in the tax year that your Bond matures, together with any interest you earn from other taxable savings.

EdGasketTheSecond

I notice under the terms of the new bond that there is no possibility of early redemption. I didn't want to tie up money for a further 3 years as the economic outlook is so uncertain so have opted to withdraw it. Otherwise 1.7% in a safe institution is about the best you can expect if you don't mind your money being inaccesible for 3 years.

Hammer_Time

I believe if you do nothing it will roll over for another 3 years, does this mean if you invested £3000.00 three year ago the interest will be added as well or do they pay you the interest back to you and only invest the £3000.00?

labp04

ColdIron said:

"The interest is paid annually

• The interest you earn on your Guaranteed Growth Bond counts towards your Personal Savings Allowance in the tax year that your Bond matures, together with any interest you earn from other taxable savings"

Hi, can you advise of the source of this please/ thanks. I'd taken the view with the original 2.2% bond that the tax potential eg PSA of interest is for inclusion in each year's calculation based on this being needed: when the interest became available; the fact that the interest was added annually; and the opportunity to cash in the bond during its life. Hmm, if I'm wrong, I'd best be letting HMRC have better info 

bowlhead99

labp04 said:

ColdIron said:

"The interest is paid annually

• The interest you earn on your Guaranteed Growth Bond counts towards your Personal Savings Allowance in the tax year that your Bond matures, together with any interest you earn from other taxable savings"

Hi, can you advise of the source of this please/ thanks. 

This is in the tax box at the bottom of the first page of key features on the product document pdf: https://www.nsandi.com/files/asset/pdf/guaranteed-growth-bonds-key-features.pdf

But that is for the most recent version of the GGB dated 2019 for customers rolling over to reinvest maturing bonds, where no withdrawals are permitted before maturity. As there's no option to access the funds before maturity, the interest can't be considered to have been 'made available' to the customer even if it is added to the product each year, and so the tax man will see it as all being taxable at maturity. 

That may be different for the original version of the bond you had where they would add the interest annually and let you access it whenever you like, subject to paying a penalty. So the change to key features of bonds which are reinvested on maturity since May 2019, compared to what the rules were on the original product that you used back in the day, doesn't mean you have necessarily been wrong in what you have told HMRC about your income from the bonds in the past.

RG2015

I have both of the Guaranteed Growth Bond and the Investment Guaranteed Growth Bond which I opened in 2017. They both have have had interest added annually in 2018 and 2019. NS&I reported the 2018 interest to HMRC and this is shown on my Personal Tax Account online.

Therefore the statement "The interest you earn on your Guaranteed Growth Bond counts towards your Personal Savings Allowance in the tax year that your Bond matures, together with any interest you earn from other taxable savings" will not apply to bonds issued in 2017. 

ColdIron

That's right, it only applies to the new GGB (Issue 65) that the IGGB will roll over into as it does not allow early redemption. Any bonds issued prior to 1st May 2019 did allow early redemption. I have the IGGB (Issue 1) and the GGB (Issue 56), both from 2017, and the T&Cs do not mention that maturity tax consideration

rentaquote

When I logged onto the NS&I website to register maturity instructions for my Guaranteed Growth Bond, I was surprised to see that one of my security questions was different from the one I set up three years ago.  Instead of asking where my first job was, I was asked who my first boss was.  As my answer was rejected, I've had to apply for a new password which is going to be sent by post. 

Has anyone else had this problem with security questions?  It's not something I've come across in a lifetime of saving and investing.

RG2015

Not with NS&I but Santander asked for my grandmother’s name when I knew my question was for my grandfather’s name. Maybe they use the same software and it has the same glitch.

newatc

Not disputing above comments but I had an experience with an account a few years back and had to phone to reset the password. . They asked me a security question "What was the name of your first teacher". I told the operator I definitely wouldn't have selected that as a question but she was adamant so with no where to go, I told the name of the teacher I had in my first class and she said "correct". I was totally shocked but when password was reset I was able to check the security questions I had chosen and there it was. Egg on face time.