The Top Fixed Interest Savings Discussion Area

Notepad_Phil

Yorkie1 said:

refluxer said:

dcs34 said:

ColdIron said:

NS&I reducing 1 year GGBs and GIBs from today

• 1-year British Savings Bonds (Guaranteed Growth) 4.04% gross/AER
• 1-year British Savings Bonds (Guaranteed Income) 3.97% gross/4.04% AER

https://nsandi-corporate.com/news-research/news/new-issues-nsis-1-year-fixed-term-bonds

I struggle to see the point of these when the current 1-year fix rate is a fair few bps above their rate, and it's not like its exempt from income tax like PBs.

I agree - I'm withdrawing my GGB that's about to mature and saving elsewhere this time but, for more cautious savers, the recently-offered 4.18% 1 year renewal rate is still better than anything you can get with the 'big names' on the high-street and even the current 4.04% offer puts it in the same ball-park as places like the Coop and some other (but localised) high-street building societies.

I have the same dilemma re. the GGBs (decision to be made tomorrow). 

As you say, the guaranteed 4.18% renewal rate is better than some around, but I can see for example the 4.5% 1 year and 4.4% 2 year fixes from Chetwood bank, which are obviously both higher.

Chetwood has FSCS protection; it's just a question of the crystal ball as to what interest rates are likely to be in a year's time! (Also, interest is added on each anniversary for the 2 year, so I assume it would be credited for tthe purposes of income tax calculations in that tax year even if not accessible ... ) 

Not sure what you mean by "in that tax year", but my understanding is that if the interest is not accessible then officially the total interest across both years would be taxable in the tax-year of the account's maturity. However many providers would still report the interest on an annual basis, so anyone not on self-assessment would likely find (unless they informed the hmrc) that the first year's interest was being taxed in tax-year 1 and the second year's interest was then taxed in tax-year 2.

poseidon1

Tandem Bank ( derived from acquisition of Harrods Bank), currently offering 1 year fix deposit at 4.37%.

https://www.tandem.co.uk/save