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

TheWoodler

The FAQs for maturity state that on renewal you still have 30 days to change your mind: 

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

It’s always good practice to log maturity dates in your diary/calendar as a prompt to action, as well as expected contact dates and decision deadlines.  

Different providers, incidentally, have slightly different maturity processes, so always worth reading the Ts&Cs and FAQs in each case. They will always contact you in advance, but the decision period and cooling-off periods vary by institution.

Decision times: you can usually amend your decision up to a cut-off date, eg the day before maturity, but that date will vary between providers.

Cooling-off periods: some don’t have one, you’re locked in from opening, but for others, 14 days is typical, and NS&I is generous with 30 days.

Methods of contact may vary too, depending on provider and paperless choices, so again, it’s really helpful to log what you need to do so you don’t forget. Life, the universe, and everything has a way of distracting you!

boingy

I've always thought that it's a bit off for banks to be able to tie you in to a new fixed period when another ends unless you instruct them differently. It's nice to have that option but the more friendly default would be to move the funds to an easy access account, even if that account is paying less interest.

qsk

friolento said:

qsk said:

I'm concerned that debit card of 10k would be rejected by my bank. Anyone know how long it takes for fast payment to get into direct saving account? 

An Open Banking deposit (Pay By Bank) arrives within 2 hours and the money is withdrawable / transferrable immediately.

Thanks. What's the limit for such payment method? (I know some banks have lower limits than fast payment when paying via open bank).

friolento

qsk said:

friolento said:

qsk said:

I'm concerned that debit card of 10k would be rejected by my bank. Anyone know how long it takes for fast payment to get into direct saving account? 

An Open Banking deposit (Pay By Bank) arrives within 2 hours and the money is withdrawable / transferrable immediately.

Thanks. What's the limit for such payment method? (I know some banks have lower limits than fast payment when paying via open bank).

It varies from bank to bank. It is also subject to fraud checks. I have only used it with Santander and Starling Bank where I have not encountered any limit with high 5 figure amounts. It's a matter of trying.

worriednoob

Bummer!

Due to some odd reason NS&I online application could not detect our postcode.  So I had to call them and do the application over the phone manually .  All seemed well and the account has been opened. 

However I never received any email  After some investigation, I've now realised that the person who helped me has misspelt my name and the email address too.  I've contacted NS&I and they said they will need to refer it to another department which could take a few days.  This means my money is now being stuck with no interest is being paid.

What can I do as this was their fault and not mine?

refluxer

worriednoob said:

Bummer!

Due to some odd reason NS&I online application could not detect our postcode.  So I had to call them and do the application over the phone manually .  All seemed well and the account has been opened. 

However I never received any email  After some investigation, I've now realised that the person who helped me has misspelt my name and the email address too.  I've contacted NS&I and they said they will need to refer it to another department which could take a few days.  This means my money is now being stuck with no interest is being paid.

What can I do as this was their fault and not mine?

I would insist on the interest being back-dated. It's the least they can do, IMO.

Miss-spelling an email address could potentially be tantamount to a data breach though (depending on what information was sent to the wrong email address) and therefore a more serious issue...?

Swipe

worriednoob said:

Bummer!

Due to some odd reason NS&I online application could not detect our postcode.  So I had to call them and do the application over the phone manually .  All seemed well and the account has been opened. 

However I never received any email  After some investigation, I've now realised that the person who helped me has misspelt my name and the email address too.  I've contacted NS&I and they said they will need to refer it to another department which could take a few days.  This means my money is now being stuck with no interest is being paid.

What can I do as this was their fault and not mine?

I don't see why you should lose interest. Surely, they'll just fix the mistakes in the name and email address on the existing bond? It's understandable that the person on the phone would not have the authority to do this.

BooJewels

I had a problem with a lost paper form (transferring money internally from Income Bonds to GIB) when I opened a GIB a few months ago and when it was eventually resolved, the interest was backdated to the day I told them that they should have received it, which was about 3 days after I signed it and I did in fact get the interest from that date, even though it wasn't opened for nearly a month.  So whilst frustrating, I didn't lose anything at all.

curlywig73

Is it worth withdrawing money (25k) from a low interest Virgin cash ISA to put into the new NS&I bond for the much better rate, thus losing the tax free status of that money for ever?  I was going to transfer it to my Vanguard ISA but it has been a bit volatile this year and the NS&I bond seems a safer bet for a year in terms of growth.  The tax free status is useful to me as I do go over the PSA each year and likely will for the next few years.  Trying to work out whether it's worth paying the extra tax on the higher NS&I interest or it would be better to preserve its tax free status and put it in my Vanguard ISA but with the risk that it performs poorly this coming year. It's hard to know what to do for the best long term when interest rates start changing as much as this.  Vanguard ISA was a no-brainer when interest rates were 1%.

curlywig73

I'm not a newie to investment by the way.  But I'm still learning about the best strategies for moving money around to get the best returns during a time when interest rates are changing and the stock market is a little bit uncertain at times.