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

masonic

sparkiemalarkie said:

friolento said:

sparkiemalarkie said:

Has this finished now? I couldn't see it when I logged onto my NS&I account.

sx

They are still there for me, when logged in , and when not logged in

I can see the income bond but not the growth bond. I will take another look
Thanks

sx

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

sparkiemalarkie

Ahhh, I can see it now. I have already bought one and wanted another . I was looking at the the advertised bonds on the site and the growth bonds weren't mentioned but, if I I look at my bond account, it gives me the option to "Buy a new bond" ...
I couldn't see for looking...too anxious in case I had missed my chance  

sx

PaulR2020

Hi
How can a rate of 6.2% apply to the GIB account? This should read 6.03%, shouldn't it?

Just curious.
Paul

refluxer

PaulR2020 said:

Hi
How can a rate of 6.2% apply to the GIB account? This should read 6.03%, shouldn't it?

Just curious.
Paul

They quote the AER of 6.20% for the GIBs as if you could have your interest paid into it (and allow it to compound) even though this isn't actually an option. As it can only be paid away, this means you can only achieve the gross rate of 6.03% for this account, as you say.

I guess they are possibly forced to use the AER for comparison purposes but in this case, as it can't actually be achieved, then it's misleading IMO.

Eco_Miser

refluxer said:

PaulR2020 said:

Hi
How can a rate of 6.2% apply to the GIB account? This should read 6.03%, shouldn't it?

Just curious.
Paul

They quote the AER of 6.20% for the GIBs as if you could have your interest paid into it (and allow it to compound) even though this isn't actually an option. As it can only be paid away, this means you can only achieve the gross rate of 6.03% for this account, as you say.

I guess they are possibly forced to use the AER for comparison purposes but in this case, as it can't actually be achieved, then it's misleading IMO.

Yes, they are forced to use the AER for comparison purposes, and that is the ONLY purpose the AER should be used for, as it can't actually be achieved in many accounts/circumstances. It is however very useful for comparing disparate accounts.

StevieB66

Can't understand why we can't fund the NS&I bond with a bank transfer like usual savings accounts. I want to invest £50,000 but it only gives you the option of a one-off debit card payment, and my bank does not allow sizeable debit card payments. Hence I seem to be stuck. Any way to get around this? 

Swipe

StevieB66 said:

Can't understand why we can't fund the NS&I bond with a bank transfer like usual savings accounts. I want to invest £50,000 but it only gives you the option of a one-off debit card payment, and my bank does not allow sizeable debit card payments. Hence I seem to be stuck. Any way to get around this? 

Open a direct saver and fund it with a bank transfer. Then use that as the source of funds for your growth bond.

BooJewels

StevieB66 said:

Can't understand why we can't fund the NS&I bond with a bank transfer like usual savings accounts. I want to invest £50,000 but it only gives you the option of a one-off debit card payment, and my bank does not allow sizeable debit card payments. Hence I seem to be stuck. Any way to get around this? 

Open up an NS&I Direct Saver - fund that increments up to £50k - then open the new NS&I bond of your choice, funding it from the Direct Saver. 

gt94sss2

StevieB66 said:

Can't understand why we can't fund the NS&I bond with a bank transfer like usual savings accounts. I want to invest £50,000 but it only gives you the option of a one-off debit card payment, and my bank does not allow sizeable debit card payments. Hence I seem to be stuck. Any way to get around this? 

You can always open multiple bonds. Each one at or under your banks debit card limit.

silvercue

I might take the plunge...nearly did yesterday until I realised it was Debit Card payment only.  May have to work around that annoyance.