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

BooJewels

Thanks @GalacticaActual - it looks to still be the same as their on-line document.  Mine matures on 9th Feb, so presumably I'll get my message in a few days (I already had a heads-up one a week or so ago) - hopefully those rates will remain for a little while longer.  I might have to play chicken with it a bit and leave my decision until the last possible minute - I probably wouldn't lock it away for 3 years if it dropped below other accounts I already have.

GalacticaActual

BooJewels said:

Thanks @GalacticaActual - it looks to still be the same as their on-line document.  Mine matures on 9th Feb, so presumably I'll get my message in a few days (I already had a heads-up one a week or so ago) - hopefully those rates will remain for a little while longer.  I might have to play chicken with it a bit and leave my decision until the last possible minute - I probably wouldn't lock it away for 3 years if it dropped below other accounts I already have.

Yes, I will leave the decision for my larger bond holding until nearer the deadline.
I suppose there’s some reassurance with their cancellation policy: you can cancel within 30 days of receiving confirmation of your Bond.

For the first two bonds I bought at £500 each, I will cash them in/transfer back to my Direct Saver.

Swipe

My bond matures on 2nd Feb on the day of the BOE's next rate decision 

Bravepants

Swipe said:

My bond matures on 2nd Feb on the day of the BOE's next rate decision 

Not sure whether it will make a difference, but the next BoE rate decision is 1st Feb...

https://www.fxstreet.com/economic-calendar/event/9959649d-be62-47f5-bafa-ff2f474b9e13

Officer_Dibble

The 2, 3 and 5 year renewal rates have now plummeted - 4.6%, 4.3% and 4.1% respectively. The automatic roll-over to 5.4% (which presumably has now been withdrawn) looks like the only attractive option. I haven't seen this cut released anywhere - obviously they only mention rate changes when they're increasing them.

TheWoodler

This information is from the NS&I page on maturity options for the Guaranteed Growth Bonds, with a link to a summary box for the rates now prevailing:

https://www.nsandi.com/help/manage-your-savings/maturing-investments/guaranteed-growth-bonds

I had chosen the 2 year fix for my maturity option in a couple of weeks, as that was a pretty decent rate, but have now chosen the 1-year fix rollover option - as per the Ts&Cs above, having already received the maturity letter, that rate is guaranteed at 5.4%, and confirmed in the process. This will have caught a few people out, I reckon. 

BooJewels

Oh, that's a shame - where have you seen that @Officer_Dibble ?  For some reason, mine has come in the post today (rather than emailed) and the document enclosed still shows the 4th December rates - 5.65% for 3 years was worth having and was my intention to go with.  I simply won't bother at 4.3%.  In 2 years, it might be a decent rate, but I wouldn't be comfortable throwing away the initial short term gain I'd have putting it in EA. Might have to look at a combination of options.
 

poppystar

Officer_Dibble said:

The 2, 3 and 5 year renewal rates have now plummeted - 4.6%, 4.3% and 4.1% respectively. The automatic roll-over to 5.4% (which presumably has now been withdrawn) looks like the only attractive option. I haven't seen this cut released anywhere - obviously they only mention rate changes when they're increasing them.

Thanks - looks like I’ll have to find another home for the funds when this matures🙁

BooJewels

This is the revised maturing Guaranteed Income Bonds rates, dated from today:

https://www.nsandi.com/files/asset/pdf/guaranteed-income-bonds-summary-n.pdf

Am I right in concluding that if you allow it to auto-renew into a new 1 year bond for the full amount of the maturing principle, you still get the quoted 5.27%, even if published rates drop?  That might be a decent compromise.

TheWoodler

That’s right @BooJewels - as per the Ts&Cs link I shared above, you’ll get the rate quoted on your letter for the 1-year rollover, even if rates drop between your letter and maturity, but they don’t offer the same guarantee for the longer-term options.