Savings

lostmyname
lostmyname Posts: 59 Forumite
Sixth Anniversary 10 Posts Name Dropper
edited 14 September 2023 at 11:16AM in Savings & investments
Hello,

I hope you can offer some advice. 

I have received a windfall of 50K that I want to put into a savings account.
Having read the MSE guide to savings, I am set on putting them into an NS&I Bond fixed for 1 year at 6.2%.

Now there are two types of Bonds:
Guaranteed Growth Bond
Guaranteed Income Bond.

I understand that the Growth Bond pays interest annually and the Income one pays monthly...

I am currently not working due to ill health so I am not paying tax, hope this will change soon.

Given the above information am I better off saving into one or other of the two bonds or does it not make any difference at all with regards to my tax position?

Thank you

Comments

  • The thing with the Income Bond is that you'll get the interest paid out each month, and if you want to carry on earning interest on that money then you'll need a plan to put it in some other account - a regular saver perhaps but it does increase the faff somewhat.  Personally I would go for the Growth Bond unless you need the interest as a regular income.
  • ColdIron
    ColdIron Posts: 9,726 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    edited 14 September 2023 at 10:50AM
    The GGB will probably pay more but it depends upon what you do with the GIB monthly payments
    GGBs pay 6.20% gross/AER
    GIBs pay 6.03% gross (what they actually pay) and 6.20% AER (what you would get if the interest compounded). But as the interest is paid away it can't compound. AER is a legal requirement so you can compare rates
    If you need the monthly income because you're not working choose GIBs. If you want the most interest choose GGBs
    Read this
  • Nikster73
    Nikster73 Posts: 118 Forumite
    Fourth Anniversary 10 Posts
    Hello,

    I hope you can offer some advice. 

    I have received a windfall of 50K that I want to put into a savings account.
    Having read the MSE guide to savings, I am set on putting them into an NS&I Bond fixed for 1 year at 6.2%.

    Now there are two types of Bonds:
    Guaranteed Growth Bond
    Guaranteed Income Bond.

    I understand that the Growth Bond pays interest annually and the Income one pays monthly...

    I am currently not working due to ill health so I am not paying tax, hope this will change soon.

    Given the above information am I better off saving into one or other of the two bonds or does it not make any difference at all with regards to my tax position?

    Thank you
    Hello,

    I hope you can offer some advice. 

    I have received a windfall of 50K that I want to put into a savings account.
    Having read the MSE guide to savings, I am set on putting them into an NS&I Bond fixed for 1 year at 6.2%.

    Now there are two types of Bonds:
    Guaranteed Growth Bond
    Guaranteed Income Bond.

    I understand that the Growth Bond pays interest annually and the Income one pays monthly...

    I am currently not working due to ill health so I am not paying tax, hope this will change soon.

    Given the above information am I better off saving into one or other of the two bonds or does it not make any difference at all with regards to my tax position?

    Thank you
    HI can you advise me what an NS&I bond is?  I have £40k in my current account at present and need to seek advice on the best option to gain interest.
  • ColdIron
    ColdIron Posts: 9,726 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    These bonds have been withdrawn from sale today
  • Albermarle
    Albermarle Posts: 27,115 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    Nikster73 said:
    Hello,

    I hope you can offer some advice. 

    I have received a windfall of 50K that I want to put into a savings account.
    Having read the MSE guide to savings, I am set on putting them into an NS&I Bond fixed for 1 year at 6.2%.

    Now there are two types of Bonds:
    Guaranteed Growth Bond
    Guaranteed Income Bond.

    I understand that the Growth Bond pays interest annually and the Income one pays monthly...

    I am currently not working due to ill health so I am not paying tax, hope this will change soon.

    Given the above information am I better off saving into one or other of the two bonds or does it not make any difference at all with regards to my tax position?

    Thank you
    Hello,

    I hope you can offer some advice. 

    I have received a windfall of 50K that I want to put into a savings account.
    Having read the MSE guide to savings, I am set on putting them into an NS&I Bond fixed for 1 year at 6.2%.

    Now there are two types of Bonds:
    Guaranteed Growth Bond
    Guaranteed Income Bond.

    I understand that the Growth Bond pays interest annually and the Income one pays monthly...

    I am currently not working due to ill health so I am not paying tax, hope this will change soon.

    Given the above information am I better off saving into one or other of the two bonds or does it not make any difference at all with regards to my tax position?

    Thank you
    HI can you advise me what an NS&I bond is?  I have £40k in my current account at present and need to seek advice on the best option to gain interest.
    Best savings accounts: 5.2% easy access or 6.11% fixed rates (moneysavingexpert.com)

    Plus read through the forum as there is lots of good info.
  • jimjames
    jimjames Posts: 18,503 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Nikster73 said:
    Hello,

    I hope you can offer some advice. 

    I have received a windfall of 50K that I want to put into a savings account.
    Having read the MSE guide to savings, I am set on putting them into an NS&I Bond fixed for 1 year at 6.2%.

    Now there are two types of Bonds:
    Guaranteed Growth Bond
    Guaranteed Income Bond.

    I understand that the Growth Bond pays interest annually and the Income one pays monthly...

    I am currently not working due to ill health so I am not paying tax, hope this will change soon.

    Given the above information am I better off saving into one or other of the two bonds or does it not make any difference at all with regards to my tax position?

    Thank you
    Hello,

    I hope you can offer some advice. 

    I have received a windfall of 50K that I want to put into a savings account.
    Having read the MSE guide to savings, I am set on putting them into an NS&I Bond fixed for 1 year at 6.2%.

    Now there are two types of Bonds:
    Guaranteed Growth Bond
    Guaranteed Income Bond.

    I understand that the Growth Bond pays interest annually and the Income one pays monthly...

    I am currently not working due to ill health so I am not paying tax, hope this will change soon.

    Given the above information am I better off saving into one or other of the two bonds or does it not make any difference at all with regards to my tax position?

    Thank you
    HI can you advise me what an NS&I bond is?  I have £40k in my current account at present and need to seek advice on the best option to gain interest.
    Bear in mind based on the info above, if you find a good rate then you need to move fast to ensure you get it. In the meantime just move the money from your current account to at least get some interest.
    Remember the saying: if it looks too good to be true it almost certainly is.
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