NS&I Income Bonds

LobsterMemory

lr1277 said:

blue_max_3 said:

The income bond account is linked to the direct saver (interest is paid to the DS). The direct saver is linked to my bank account. To withdraw from my income bond account, I transfer to the direct account and from there to my linked bank account. This shows in my bank account next day. And the reverse, I bank transfer from my current account into my direct saver (shows next day). And then, if over £500, to my income bond account (happens instantly).

Can I ask how you set up this arrangement? Have opened a direct saver account and funded it by debit card. Waiting for the funds to clear.

So looking around the income bond web page, I can't see anything about funding it from the Direct Saver.

Did you do this by completing a form? If so, that way forward is not available at the moment.

Many thanks.

Yes, did this a few days ago and I think the instructions on the website are out-of-date, so much so that I wasn't even sure you could link the accounts.
What I did was setup am IB funded by direct debit while logged into NS&I. During the process it asked whether you wanted the nominated account to be either the DS or another external account. Choosing the DS means that the monthly interest is sent there (on the 5th/6th)
I think there was also the option for the account to be initially funded by a transfer from the DS which is what I think should be made clearer.

Now they're up and running, the interface on the dashboard is much clearer with a button to transfer funds between the accounts which is instantaneous. 

colsten

LobsterMemory said:

lr1277 said:

blue_max_3 said:

The income bond account is linked to the direct saver (interest is paid to the DS). The direct saver is linked to my bank account. To withdraw from my income bond account, I transfer to the direct account and from there to my linked bank account. This shows in my bank account next day. And the reverse, I bank transfer from my current account into my direct saver (shows next day). And then, if over £500, to my income bond account (happens instantly).

Can I ask how you set up this arrangement? Have opened a direct saver account and funded it by debit card. Waiting for the funds to clear.

So looking around the income bond web page, I can't see anything about funding it from the Direct Saver.

Did you do this by completing a form? If so, that way forward is not available at the moment.

Many thanks.

Yes, did this a few days ago and I think the instructions on the website are out-of-date, so much so that I wasn't even sure you could link the accounts.
What I did was setup am IB funded by direct debit while logged into NS&I. During the process it asked whether you wanted the nominated account to be either the DS or another external account. Choosing the DS means that the monthly interest is sent there (on the 5th/6th)
I think there was also the option for the account to be initially funded by a transfer from the DS which is what I think should be made clearer.

Now they're up and running, the interface on the dashboard is much clearer with a button to transfer funds between the accounts which is instantaneous. 

Just a word on terminology: you cannot fund any NS&I account by Direct Debit.

You can fund them by
- debit card 
- bank transfer (one-off and/or Standing Order)
- internal transfer

Internal transfers are obviously instant but you can only internally transfer cleared funds. The brochures and the FAQ on the NS&I website explain clearing times (which can be extraordinarily long) for debit cards and bank transfer deposits,  as well as the dates interest gets paid from (which can be extraordinarily instant)

There is, as far as I can see, no advantage in depositing into the Income Bonds via the Direct Saver. Clearing times are the same. You would just add an additional manual step, and get a lower interest  rate for up to 7 banking days.

DavidT67

Worth noting that NS&I are not regulated by the Financial Conduct Authority nor do they need to comply with Payment System Regulations regarding timely transaction processing times.  
So you've no come back if they leave your bank transfer sitting in their holding account for three months and you'll be out of luck trying to get anyone on the phone who can provide meaningful information.  Their back office is outsourced to ATOS.  

LobsterMemory

colsten said:

LobsterMemory said:

lr1277 said:

blue_max_3 said:

The income bond account is linked to the direct saver (interest is paid to the DS). The direct saver is linked to my bank account. To withdraw from my income bond account, I transfer to the direct account and from there to my linked bank account. This shows in my bank account next day. And the reverse, I bank transfer from my current account into my direct saver (shows next day). And then, if over £500, to my income bond account (happens instantly).

Can I ask how you set up this arrangement? Have opened a direct saver account and funded it by debit card. Waiting for the funds to clear.

So looking around the income bond web page, I can't see anything about funding it from the Direct Saver.

Did you do this by completing a form? If so, that way forward is not available at the moment.

Many thanks.

Yes, did this a few days ago and I think the instructions on the website are out-of-date, so much so that I wasn't even sure you could link the accounts.
What I did was setup am IB funded by direct debit while logged into NS&I. During the process it asked whether you wanted the nominated account to be either the DS or another external account. Choosing the DS means that the monthly interest is sent there (on the 5th/6th)
I think there was also the option for the account to be initially funded by a transfer from the DS which is what I think should be made clearer.

Now they're up and running, the interface on the dashboard is much clearer with a button to transfer funds between the accounts which is instantaneous. 

Just a word on terminology: you cannot fund any NS&I account by Direct Debit.

You can fund them by
- debit card 
- bank transfer (one-off and/or Standing Order)
- internal transfer


There is, as far as I can see, no advantage in depositing into the Income Bonds via the Direct Saver. Clearing times are the same. You would just add an additional manual step, and get a lower interest  rate for up to 7 banking days.

1 Yes meant debit card
2 If you only have say £300 to put away a month, then you can add that first  to the DS and transfer to IB oncr you get over £500

colsten

LobsterMemory said:

2 If you only have say £300 to put away a month, then you can add that first  to the DS and transfer to IB oncr you get over £500

That is true. However, you could save up your £500 (or even more) in accounts that pay 50% or even 100% more than the NS&I Direct Saver. TSB Plus. Virgin Money current account.

colsten

lr1277 said:

So looking around the income bond web page, I can't see anything about funding it from the Direct Saver.

Have another look. There are two ways of funding your IB from your DS. The transfer options are shown regardless of your DS balance but you need to have at least £500 cleared in your DS before you are actually able to transfer anything to the IB. If you are still unable to see these options, you don't have a DS account set up yet.

However, as I have already commented earlier, I can't presently see much of a point in depositing into the DS first.


1 - starting from the IB, select 'Pay money in' and follow the instructions

2 - starting from the DS, press the 'Transfer' button and follow the instructions

tom410

When does the monthy interest from my NS&I income bonds get paid to my account?

colsten

tom410 said:

When does the monthy interest from my NS&I income bonds get paid to my account?

From the brochure: "Every 5th day of the month we pay the interest to your nominated account. If this is not a banking day, we will pay the interest on the next banking day."

lr1277

Thanks to you both lobstermemory and colsten.

Mosler

To clarify does the interest start being paid when the amount is shown in balance or available balance?
Thanks