The Top Fixed Interest Savings Discussion Area

mebu60

moi said:

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.

You can drip-feed in the sense that you can open and fund multiple bonds while they are available.

I have a 1 Yr Bond maturing next week so have used EA funds to secure the NS&I GGB 1 Yr rate then will replace the EA funds next week. 

The 30 day cooling-off option could be interesting if something significantly better arrives in that time. 

refluxer

Sea_Shell said:

Hmmm

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

Decisions decisions.

Glass balls anyone 😉

You could always split it 50/50 ?

You can get 6.05% for 2 years with some established names at the moment.

mebu60

Sea_Shell said:

Hmmm

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

Decisions decisions.

Glass balls anyone 😉

50% NSI 1 Yr 6.2%
50% Ford 2 Yrs 6.05%
Other % splits are available! :-) 

BooJewels

I personally hope that I have to pay a gob load of tax on my interest - because it means that I'll be earning a load.

I'm having the same conversation with myself @Sea_Shell - I'm thinking that 2 years might be a slightly better bet in the long term - it's only just over 2 quid a month difference on £10k - so you'd lose about 25 quid in the first year, but get the extra year, when rates might have dropped.

janusdesign

gt94sss2 said:

6.2% One Year Bond

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

worth noting that the Growth Bonds pay their interest at the end of the year; the Income Bonds pay it monthly.

for me, I pulled the money out of a recently funded Ford Fix and into NS&I - it should be win/win as i'll get more interest and now avoid any tax issues this year.

ColdIron

You know that GGBs are not tax free?

janusdesign

ColdIron said:

You know that GGBs are not tax free?

wait what?? lol .... yes I do know, but the Ford fix would have paid monthly, whereas NS&I kicks the interest down the road until next August (and a new tax year) - it should help avoid tax in both years.

jacko74

Hopefully the regular banks will now match NS&I's 6.2% for 1 year... I'd rather use one of them than have to deal with all the convoluted processes that NS&I seem to insist on using.

Barkin

Investec have gone the other way - down from 6% to 5.8%

Swipe

It's going to cost NS&I a lot of postage when all these multiple £500 bonds approach maturity.