How do you close NS&I income bond account?

The_Fat_Controller

Just for info, I actioned two large withdrawals on Wednesday 4th
The first for £50k, for next day payment and then another for £104k, which the "system" said would be paid on Monday 9th.
(The "system" advised that any second withdrawal would be paid in 3 workings days regardless of amount)
The following morning I received a call from the NSandI security department asking about these pending transactions, I passed the security questions and they advised the first payment would be on that day, Thursday and the second on Friday.
That's how it panned out, so it's all now back with Al Rayan where my legacy Everyday Saver is still paying 1.16%

dave_dph

The_Fat_Controller said:

That's how it panned out, so it's all now back with Al Rayan where my legacy Everyday Saver is still paying 1.16%

Do you not worry about the FSCS limit?

The_Fat_Controller

@dave_dph, always on my mind, especially as 12 years ago I was an ICESAVE customer when they collapsed.
However, it's a risk I am prepared to accept and a loss I could live with.

dave_dph

Yeah I had a cash ISA with Icesave when they collapsed! Was rather stressful until the government stepped in.

NottinghamKnight

The_Fat_Controller said:

@dave_dph, always on my mind, especially as 12 years ago I was an ICESAVE customer when they collapsed.
However, it's a risk I am prepared to accept and a loss I could live with.

Each to their own but that doesn't sound a very logical thought process. Tens of thousands at risk (fairly low but they aren't a big institution) to get an extra couple of quid a week, seems an asymmetric deal to me.

The_Fat_Controller

@NottinghamKnight, I got into the Everyday Saver at the right time and although the rates have come down it is still better than anything on the market, in fact 50% better than the next best instant access account.
For me, it's more than a couple of quid a week.
I also have a fixed tern product with Al Rayan that is paying 2.2%
I know it's a risk, but I am sick and tired of opening and closing accounts to chase rates.

NottinghamKnight

The_Fat_Controller said:

@NottinghamKnight, I got into the Everyday Saver at the right time and although the rates have come down it is still better than anything on the market, in fact 50% better than the next best instant access account.
For me, it's more than a couple of quid a week.
I also have a fixed tern product with Al Rayan that is paying 2.2%
I know it's a risk, but I am sick and tired of opening and closing accounts to chase rates.

Absolutely your choice but it sounds counter intuitive. If you have large amounts in cash then you would logically be risk averse, and it is unlikely to be more than a few quid a week unless you have multiples of the fscs limit with the one institution, which then means more risk on the larger amount.

The_Fat_Controller

Apologies to the OP for getting a bit off topic, but you did get your answer !
@NottinghamKnight, those "large amounts of cash" are several multiples, so it makes quite a difference.
I was lucky enough to be employed in a profession where I could afford to bung the maximum into stock and shares PEPs/ISAs since their inception with all dividends reinvested.
With the "paper loss" on that, I know all about risk, but it's slowly recovering.
As for Al Rayan, they have paid their expected profit ever since I have been with them and I would recommend them for their good service.

NottinghamKnight

The_Fat_Controller said:

Apologies to the OP for getting a bit off topic, but you did get your answer !
@NottinghamKnight, those "large amounts of cash" are several multiples, so it makes quite a difference.
I was lucky enough to be employed in a profession where I could afford to bung the maximum into stock and shares PEPs/ISAs since their inception with all dividends reinvested.
With the "paper loss" on that, I know all about risk, but it's slowly recovering.
As for Al Rayan, they have paid their expected profit ever since I have been with them and I would recommend them for their good service.

Fine, as for derailing the thread I think you are right in that the original question has been answered.
If your ISAs have been losing money then something very odd has been happening, a typical globally diversified equity heavy fund has been producing 10%+ returns since the GFC. so for the last 12 years at least. Pension provision is an obvious use for the money and equities can also be held unwrapped, the isa limit doesn't preclude further investment.  

The_Fat_Controller

@NottinghamKnight, the ISA "paper loss" is from this year's Covid dip, overall it's done very well, thanks.
In the last few years of employment my pension contributions in a DB scheme, even at the normal rate, were very close to the annual limit, so topping up was not an effective option.
When I took my pension in 2015 at age 56.5 it was valued at 90.1% of the LTA and enough for me to live comfortably.