The Top Fixed Interest Savings Discussion Area

gt94sss2

6.2% One Year Bond

https://www.nsandi.com/products/guaranteed-growth-bonds

Mr._H_2

gt94sss2 said:

6.2% One Year Bond

https://www.nsandi.com/products/guaranteed-growth-bonds

  

Very unexpected. Very tempting, especially for anyone with >£85k to save. It'll be interesting to see if any banks try to compete with this.

subjecttocontract

Mr._H_2 said:

gt94sss2 said:

6.2% One Year Bond

https://www.nsandi.com/products/guaranteed-growth-bonds

  

Very unexpected. Very tempting, especially for anyone with >£85k to save. It'll be interesting to see if any banks try to compete with this.

Why the reference to £85K ?
The FSCS limits do not apply to NS&I.

mebu60

subjecttocontract said:

Mr._H_2 said:

gt94sss2 said:

6.2% One Year Bond

https://www.nsandi.com/products/guaranteed-growth-bonds

  

Very unexpected. Very tempting, especially for anyone with >£85k to save. It'll be interesting to see if any banks try to compete with this.

Why the reference to £85K ?
The FSCS limits do not apply to NS&I.

I think that is the point Mr._H_2 was making! 

Mr._H_2

subjecttocontract said:

Mr._H_2 said:

gt94sss2 said:

6.2% One Year Bond

https://www.nsandi.com/products/guaranteed-growth-bonds

  

Very unexpected. Very tempting, especially for anyone with >£85k to save. It'll be interesting to see if any banks try to compete with this.

Why the reference to £85K ?
The FSCS limits do not apply to NS&I.

That’s the point. “>” means “greater than”. If you’ve more than £85k to save, this account simplifies things a lot as you don’t have to worry about the FSCS limit

Middle_of_the_Road

I'm not surprised by the latest NS&I increase, even though the top rates have been falling recently. I believe they have a realistic outlook of where the market is heading.

Around 4 months ago when the best 1 year bond rate had fallen to around 4.3%, most were saying bonds were likely to be at a lower rate in 12 months time. The rationale being that fixed term accounts rates are set on perceived future swop rates. If this was based on the belief that inflation could be brought under control within the next year or so, then that would seem reasonable.

I have no idea how swop rates are determined or what the banks are deciding what they'll be in the next year or so. What does seem realistic though, is with the continued base rate rises here, and in the US, necessitated due to continued persistent inflation, there could be more increases in the fixed rates in the next few months.

The headline rate of inflation may be falling, but with the prospect of increases in fuel and energy, and still rising food prices, coupled with continued wage increases, I think inflation is far from under control.

moi

gt94sss2 said:

6.2% One Year Bond

https://www.nsandi.com/products/guaranteed-growth-bonds

I expect some here know NS&I's Bond funding process, but for those who didn't, like me....

The Guaranteed Growth Bond is no good if you want to open an account just to secure the rate, and then decide if you want to actually fund it in a funding window.  You have to "buy" a £500+ Bond while opening. No good for drip-feeding over a couple of weeks either.

"You can cancel within 30 days of receiving confirmation of your Bond," though, which could be useful.

Sea_Shell

Hmmm

6.2% for 1yr vs 5.95% for 2 years.

Decisions decisions.

Glass balls anyone 😉

2010

I can see a lot of people being drawn into tax on savings soon.
People assume they get £1k interest tax free but it`s not that simple.

Dazed_and_C0nfused

2010 said:

I can see a lot of people being drawn into tax on savings soon.
People assume they get £1k interest tax free but it`s not that simple.

So true.

Depending on what other income you have it can range from £0 to £18,570 before tax is actually payable.

And for those old enough to be eligible for Married Couple's Allowance quite a lot more.