NS&I 1 Year Guaranteed Growth Bonds and Guaranteed Income Bonds at 6.20%

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Swipe said:

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Swipe said:

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I have registered for self assessment (£10,000 interest rule) for the first time so look forward to that...not.

If you already keep records it's as easy as filling in a couple of boxes. The only downside is having to pay a 50% payment on account up front for the next year if you owe more than £1000 tax.

For the current tax year 2023/24 i will try and keep my savings interest below £18,570 – I have no other income so if needs be I will put savings interest in premium bonds.

If from my sums I do keep under £18,570 do I contact HMRC or will they contact me? Is the payment deadline January 2024?

 

You still have to enter all your interest details and numbers and do your calculation and then submit it when you are happy with it, even if no tax is due or you'll get fined. There are lots of good self assessment guides on youtube. The payment deadline is Jan 24 for the 22/23 tax year

I just have sent off my tax return just now, i found it a bit convoluted, but thanks anyway for the heads up.  

caper7

There is a downloadable "application to switch to a Guaranteed growth bond"
You can switch from another NS&I account.
I suppose it would be too much to hope Premium Bonds would be considered an account?
Does anyone know?

dcs34

Was having a look at this and toying between cashing in my premium bonds to do so. I noticed that, as a 40% tax payer the rates on the accounts are very similar:

Premium bonds @ 3.7% expected compared to Guaranteed bonds @ 6.2 - 40% = 3.7%

So whilst these bonds guarantee the rate of 3.7%, premium bonds offer the possibility of earning more (though also earning less) and the ability to cash in should access to the funds be required.

friolento

caper7 said:

There is a downloadable "application to switch to a Guaranteed growth bond"
You can switch from another NS&I account.
I suppose it would be too much to hope Premium Bonds would be considered an account?
Does anyone know?

You could

1. transfer some or all of your PBs into an NS&I Direct Saver
2. fund your GGB from the NS&I Direct Saver. This is a supported option, alongside the debit card option.
   

caper7

friolento said:

caper7 said:

There is a downloadable "application to switch to a Guaranteed growth bond"
You can switch from another NS&I account.
I suppose it would be too much to hope Premium Bonds would be considered an account?
Does anyone know?

You could

1. transfer some or all of your PBs into an NS&I Direct Saver
2. fund your GGB from the NS&I Direct Saver. This is a supported option, alongside the debit card option.
   

I phoned them and was told you could fund using premium bonds using the form I mentioned by post. 

mebu60

dcs34 said:

Was having a look at this and toying between cashing in my premium bonds to do so. I noticed that, as a 40% tax payer the rates on the accounts are very similar:

Premium bonds @ 3.7% expected compared to Guaranteed bonds @ 6.2 - 40% = 3.7%

So whilst these bonds guarantee the rate of 3.7%, premium bonds offer the possibility of earning more (though also earning less) and the ability to cash in should access to the funds be required.

PBs 4.65% expected. Though actual will be bit less after allowing for major prizes. 

Sheena53

Hello Everyone
Newbie here! 
Can anyone tell me whether when you invest your money with the NS&I you therefore buy premium bonds which go into the monthly draw?

Eco_Miser

Sheena53 said:

Hello Everyone
Newbie here! 
Can anyone tell me whether when you invest your money with the NS&I you therefore buy premium bonds which go into the monthly draw?

No. Unless you actually buy Premium Bonds.

NS&I offer various savings products which are not Premium Bonds.

SeriousHoax

Hi, once you sign up to this account, do you get so many days to fund the account.

refluxer

SeriousHoax said:

Hi, once you sign up to this account, do you get so many days to fund the account.

Guaranteed Growth Bonds are not funded in the same way as most other fixed rate bonds - there is no funding window. Instead, you buy them in one go directly on the NS&I site - either with a debit card or via another NS&I account. I'm not sure about the Guaranteed Income Bonds, though.