NS&I have stopped accepting/making payments

Hils0912

When I worked for them (left las year), I used to tell customers if they didn't need the interest from the Income Bond, then to have it paid into the Direct Saver, so the interest built up for that too. 

Archi_Bald

Hils0912 said:

When I worked for them (left las year), I used to tell customers if they didn't need the interest from the Income Bond, then to have it paid into the Direct Saver, so the interest built up for that too. 

There is nothing that would stop people from paying their interest into an interest-earning account, e.g. into a Virgin current account or into a TSB Plus account, a Marcus or RCI account, or indeed back into the Income Bond if the interest can be part of a £500+ deposit. To put all your money into a 1% account is really not necessary at the present time, and certainly not MSE.

@Hils0912, from working at NS&I, can you shed some light on the delays people have seen with their deposits for the Income Bonds? Is this the normal procedure or was it a temporary resource problem?

Speedbird676

quirkydeptless said:

I have just opened a new Income Bonds account. Paid in £500 by Debit card and was there straight away. Took less than 10 minutes as an existing customer (from holding Premium Bonds).

Ditto.

Hils0912

It has always been in T&C's for Income Bonds that any payment made between 20th of one month - 5th of the next shows as pending and that interest earned gets backdated to date received and paid the following month.  

Safe distancing will have resulted in some staff being furloughed, there will also be some staff having to shield, this will result in more delays, but any funds they do receive will all be backdated to the correct dates and interest will be applied to the date received.

Archi_Bald

Hils0912 said:

It has always been in T&C's for Income Bonds that any payment made between 20th of one month - 5th of the next shows as pending and that interest earned gets backdated to date received and paid the following month.  

Thanks, that's interesting. Do you know why there is this large lag?

NB. I take it you mean 22nd, not 20th? 

quirkydeptless

RG2015 said:

quirkydeptless said:

Sea_Shell said:

quirkydeptless said:

I have just opened a new Income Bonds account. Paid in £500 by Debit card and was there straight away. Took less than 10 minutes as an existing customer (from holding Premium Bonds).

Snap!!!

Actually now bumped it up to £1200 so I get exactly £1.16 income a month. I'll try not to spend it all at once

I feel like you have set a trap for the pedants but I will bite anyway.

You would get £1.18 on August 5th and September 5th and £1.14 on October 5th and so on.

Errm, yes, it must have been a trap 

quirkydeptless

Archi_Bald said:

it’s not surprising that your deposits show immediately now. Try another deposit after June 22nd and before July 5th and see how that one’s going.

Now I know what dates to avoid 

Hils0912

It is 20th, also on the website it states 20th for Income Bonds (our products - Income Bonds - Find out more. 

NS&I is not a bank, payments coming in have to have clear their bank accounts prior to the interest going on, that is also why, when you make a deposit into your own accounts, you can not withdraw it the day after, it has to clear first (can take upto a week).  All the different products have a different sort code although they have the same account number

eskbanker

Hils0912 said:

NS&I is not a bank

Based on the last time this seemingly uncontentious statement was made on this thread (see pages 5 and 6), you should prepare yourself for some pointless and attritional 'debate' on this apparently sensitive topic....

* grabs bucket of popcorn *

Archi_Bald

Oh, it's the 20th. I don't know where I got the 22nd from. All I can find in the Income Bond terms is this:

If we receive an application to invest on or after the 20th of any month, we might not be able to make the first interest payment on the 5th day of the following month. If this happens we will pay all the interest the Income Bonds account has earned from the date of investment on the next interest payment date.

This if fine, no problem with that.

Try as I might, I cannot see anywhere that deposits made between the 20th and the 5th will not show in the transaction list, or will show in the pending list, or whatever they do with it. I have a feeling that we will never get to the bottom of why they are doing what they are doing - we just know now that strange things might happen to deposits for a period of 2-ish weeks every 20th to 5th.