NS&I 4.00% Guaranteed Growth Bond and 3.97% Guaranteed Income Bond

ColdIron

National Savings has just launched a one year fixed growth bond paying 4% and monthly income bond 3.97% (AER)

Might be of interest to some

https://www.nsandi.com/guaranteed-returns

The_Green_Hornet

                               

ChilliBob

Interesting, presumably only really of interest if you intend to fix more than the 85k limit and can't be bothered to have multiple >4% accounts?

ColdIron

I have a friend who has about £700k with NS&I because he cba to split it up and likes the security that comes with them. Useful for him

Could be worth a look for people with a Direct Saver or Income Bonds for some, if not all, of their savings

The GIBs are also useful for people who want a monthly income and a higher rate than offered by variable/limited access accounts. Most (but not all) fixed term accounts pay annually or upon maturity

Another arrow in the quiver so to speak

Mands

ChilliBob said:

Interesting, presumably only really of interest if you intend to fix more than the 85k limit and can't be bothered to have multiple >4% accounts?

Or you live outside the UK in a market where similar rates don't exist or are too risky.

I'm resident elsewhere in Europe and continue to have savings in NS&I. Once I'd jumped through the, extensive, hoops to get my account opened it's been my primary savings location due to lack of other options.

subjecttocontract

Presumably it's taxable ? So, a 4% ish ISA makes far more sense especially this close to the start of a new tax year.

ColdIron

Sure, it's taxable, but if you had more (or a lot more) than £20,000 and wanted to stay in cash it's another option

Horses for courses

Band7

subjecttocontract said:

Presumably it's taxable ? So, a 4% ish ISA makes far more sense especially this close to the start of a new tax year.

that's ok if you don't have more than £20k per tax year, and haven't used your ISA allowance otherwise. Mind you, £20k would yield less than the PSA for BR tax payers, so it might be academic anyway.

Shedman

Its quite handy if you have PoA for somebody and need to find a home for a chunk of cash (as we will need to very soon with MiL as a fixed account matures next week) and they already have an NSI account, as it saves having to go through all the rigamarole of sending IDs, certified copies of PoA etc off to open an account with another bank (esp given how few are available to open with a PoA anyway)

Shedman

This could be a good wheeze to get a 4% 30 day notice account maybe (although perhaps with the delay in getting the refund its more a 40-45 day notice account) 

"If you change your mind after you invest, you can cancel within 30 days of receiving confirmation of your Bond. You can do this online or by phone, or you can write to us.

We'll refund your money, plus any interest earned, within 14 days of cancellation."

Swipe

The_Green_Hornet said:

                               

Is it working yet?