Ns&i Green Bonds

ranciduk

Now the interest rate has been doubled I’m very interested in investing in these bonds

I’ve never really funded an account like this online before

how do you put money in? Are you able to make payments into it with debit card payments, like you can when buying premium bonds?

also, once you’ve opened the account - is there a time limit on when you can add extra funds?

 Thanks 

eskbanker

https://www.nsandi.com/files/asset/pdf/green-savings-bonds-summary.pdf

https://www.nsandi.com/files/asset/pdf/green-savings-bonds-brochure.pdf

Thrugelmir

Check out the NSI website. 

ranciduk

Thanks all

when the three years is up - can you instruct them to transfer all the money back to your nominated bank account?

cx6

Yes. Don't forget NS&I now pay all the interest in one go in year 3 (instead of paying it to your bank each year) so you may have a tax hit.

ranciduk

Okay cheers!

Daliah

Out of interest, why would you settled for a 1.3% account when there are several that pay over 1.8%?

ranciduk

cx6 said:

Yes. Don't forget NS&I now pay all the interest in one go in year 3 (instead of paying it to your bank each year) so you may have a tax hit.

I don’t quite understand this issue

After three years I think I would probably be due around £3000 interest. So I don’t pay anything on £1000? But how much of the remaining £2000 would I stand to lose?

refluxer

ranciduk said:

I don’t quite understand this issue

After three years I think I would probably be due around £3000 interest. So I don’t pay anything on £1000? But how much of the remaining £2000 would I stand to lose?

It depends on your tax situation - have a look at MSE's article on the Personal Savings Allowance.

You could potentially end up paying more tax from this 3-year NS&I bond (If it pays all the interest in one go at the end) then you would if you took out three individual, consecutive 1-year fixed rate accounts elsewhere.

InvesterJones

ranciduk said:

cx6 said:

Yes. Don't forget NS&I now pay all the interest in one go in year 3 (instead of paying it to your bank each year) so you may have a tax hit.

I don’t quite understand this issue

After three years I think I would probably be due around £3000 interest. So I don’t pay anything on £1000? But how much of the remaining £2000 would I stand to lose?

Whatever your usual income tax rate is.

bristolleedsfan

cx6 said:

Yes. Don't forget NS&I now pay all the interest in one go in year 3 (instead of paying it to your bank each year) so you may have a tax hit.

"We calculate the interest daily and add it to your Bond on each anniversary of your investment"

Why might there be a tax hit ???