NS&I Green Savings Bond

pbartlett

the rolling over of interest is a big trap to be wary of

MX5huggy

Do we know if they will be taxable? PB’s and Certificates aren’t.

eskbanker

MX5huggy said:

Do we know if they will be taxable? PB’s and Certificates aren’t.

....but Income Bonds, Direct Saver, etc, are taxable - if they were planning to make these tax-free then that would be a surprising concession from the Treasury in the current climate and would be advertised prominently, although everything is very sketchy about these so far.

https://www.nsandi.com/tax-free-saving
https://www.nsandi.com/products
https://www.nsandi.com/help/manage-your-savings/tax-on-savings

kuratowski

Ha, yes I had the same thought.  And in fact the Treasury/Chancellor would probably love the idea of a 3 year roll up of interest creating a future tax windfall; they can book it immediately in the next budget to meet fiscal rules, but voters won't notice it until 3 years' time

Malthusian

eskbanker said:

MX5huggy said:

Do we know if they will be taxable? PB’s and Certificates aren’t.

....but Income Bonds, Direct Saver, etc, are taxable - if they were planning to make these tax-free then that would be a surprising concession from the Treasury in the current climate and would be advertised prominently, although everything is very sketchy about these so far.

https://www.nsandi.com/tax-free-saving
https://www.nsandi.com/products
https://www.nsandi.com/help/manage-your-savings/tax-on-savings

Any NS&I product is already a concession from the Treasury; the Treasury borrows money from the markets at near zero and hands it to NS&I investors at a higher rate of interest to buy their votes. From the Treasury's perspective it doesn't matter if they offer 1% taxable or 0.8% tax-free; adjusting the percentages slightly for the actual average marginal tax rate of NS&I investors.

Where it does matter is that the "tax-free" status of Premium Bonds and Index-Linked Savings Certificates is effectively a bung to higher rate taxpayers (poorer NS&I investors would have to invest more money in a non-NS&I product to get the same return).

So I agree with you but for a different reason; it seems unlikely in the current climate (lololol) that the Government will prioritise richer taxpayers.

NameWithheld

0.65%. Don't all rush at once!

Stubod

...hmmm .....not a particularly good rate, and I suspect there will be better rates available in "normal" savings accounts shortly that don't require a 3 year fix?

Still makes PBs the only current NSI account worth bothering with so I will be giving Green Bonds a miss.

SonOfPearl

NameWithheld said:

0.65%. Don't all rush at once!

For a 3-year fixed bond! Good grief, they won't raise much money with that rate. What a let down after so much fanfare! 

Martin_the_Unjust

NameWithheld said:

0.65%. Don't all rush at once!

That’s a no from me

Albermarle

Current best 3 year fixed rate savings account is 1.81% and for a 3 year ISA - 1.15%