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Are NS&I Income Bonds better than the "highest interest" easy access savings accounts?

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Comments

  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    edited 5 August 2020 at 4:08AM
    Sorry to hijack this thread but....
    Question regarding the monthly interest paid into the current account?

    Is it always in two parts? I have two credits with a reference ending in NSIB showing as of today and these match two 'BACS INCOME PAYMENT' NS&I references.

    PS I do not work for NS&I either.

    Edit - I wonder if the two parts relate to cleared and uncleared transactions. The split seems about right.
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,114 Ambassador
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    Another thing to note on the bond type of accounts is that funds transferred in take an age to become cleared such that they show as pending for over a week.

    I have two from the 26/27th of July that, whilst still earning interest, are unable to be withdrawn against.

    Hence if that causes you difficulty then avoid this type.
    As far as I understand with the N S and I investment bond account any deposits between the 20th of the month and the 5th only show on the 5th but they earn interest from the date of deposit.  I cannot imagine why anyone would put money in to the account on the 26th and then want to withdraw it again within the next week.  It is not as if it will earn a fortune in interest in those few days. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • Gers
    Gers Posts: 13,299 Forumite
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    It's mostly a case of a bad workman etc etc.
    I've just opened a Direct Saver online - had a 15 second wait in the online queue and then job done in under a minute. 
  • Doshwaster
    Doshwaster Posts: 6,351 Forumite
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    Gers said:
    It's mostly a case of a bad workman etc etc.
    I've just opened a Direct Saver online - had a 15 second wait in the online queue and then job done in under a minute. 
    I opened a Direct Saver last night after my high street savings account went down to 0.01%. Very simple process which only took a couple of minutes. Made an initial deposit of £100 by debit card which went through immediately. I then did a test transfer of £1 by BACS and that hasn't appeared yet. 
  • RG2015
    RG2015 Posts: 6,073 Forumite
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    Gers said:
    It's mostly a case of a bad workman etc etc.
    I've just opened a Direct Saver online - had a 15 second wait in the online queue and then job done in under a minute. 
    I opened a Direct Saver last night after my high street savings account went down to 0.01%. Very simple process which only took a couple of minutes. Made an initial deposit of £100 by debit card which went through immediately. I then did a test transfer of £1 by BACS and that hasn't appeared yet. 
    I have deposited by both faster payments (BACS?) and debit card and cannot work out which is quickest. It does seem to vary. However, irrespective of the "cleared" date, interest will be accrued from the payment date. I also like that NS&I also show the value date in their transaction list.
  • Gers
    Gers Posts: 13,299 Forumite
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    edited 5 August 2020 at 11:11AM
    RG2015 said:
    Gers said:
    It's mostly a case of a bad workman etc etc.
    I've just opened a Direct Saver online - had a 15 second wait in the online queue and then job done in under a minute. 
    I opened a Direct Saver last night after my high street savings account went down to 0.01%. Very simple process which only took a couple of minutes. Made an initial deposit of £100 by debit card which went through immediately. I then did a test transfer of £1 by BACS and that hasn't appeared yet. 
    I have deposited by both faster payments (BACS?) and debit card and cannot work out which is quickest. It does seem to vary. However, irrespective of the "cleared" date, interest will be accrued from the payment date. I also like that NS&I also show the value date in their transaction list.

    From the website -

    Bank transfer deposits will take two or three banking days to show in your NS&I account.
    Also-
    If you’re looking to buy Bonds or open a savings account, then you’re already in the right place. You can invest using your debit card right here – it takes less than 5 minutes.

    Tip: Your balance may not update straight away. Don't worry if this happens - you can still see your deposit by logging in, clicking on 'View account' then scrolling down to 'Pending transactions' and clicking the plus sign.



  • RG2015
    RG2015 Posts: 6,073 Forumite
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    @Gers, Thanks for your reply. Do you have a take on whether a faster payment or a debit card payment has any benefits over the other?
  • Gers
    Gers Posts: 13,299 Forumite
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    No, sorry.  I prefer the debit card route.  Others will be more qualified to give an objective view.  I did debit card payments to two NS&I accounts this morning and they both showed up immediately.  Plus I received confirmation emails within an hour.


  • AndyPK
    AndyPK Posts: 4,386 Forumite
    Part of the Furniture 1,000 Posts
    Hi

    Regarding the 1.2% bond. Can you add money each month ? 
  • Sebo027
    Sebo027 Posts: 212 Forumite
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    For "Ready Cash" I personally I hold two regular savings accounts (drip fed each year) and a Santander 123 account, even though the interest etc recently has been reduced recently. My emergency fund is in premium bonds, about 12k. 
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