NS&I Guaranteed Growth Bond

M4rtyman

I am looking to invest about £30k in the Growth bond before the rates change, but it appears there is no "funding window". My existing bond matures next Wednesday, so I thought I could open up a new Growth bond NOW and then fund it next week. However, it seems to be looking for me to provide a debit card payment right now. I thought I might be able to pay in £500 now, and then the balance next week, but the T&Cs also say that I can't top up either. What gives?

Also --- debit card only? How can you fund higher amounts with only a debit card?

friolento

M4rtyman said:

I am looking to invest about £30k in the Growth bond before the rates change, but it appears there is no "funding window". My existing bond matures next Wednesday, so I thought I could open up a new Growth bond NOW and then fund it next week. However, it seems to be looking for me to provide a debit card payment right now. I thought I might be able to pay in £500 now, and then the balance next week, but the T&Cs also say that I can't top up either. What gives?

Also --- debit card only? How can you fund higher amounts with only a debit card?

You are right, you have to fund it immediately. There is no funding window with this account. You could secure a slightly lower rate elsewhere, in case the NS&I account is no longer available next week. Most importantly, don't panic!

bristolleedsfan

M4rtyman said:

Also --- debit card only? How can you fund higher amounts with only a debit card?

Separate purchases, online account gives option to purchase more bonds.

vacheron

M4rtyman said:

I am looking to invest about £30k in the Growth bond before the rates change, but it appears there is no "funding window". My existing bond matures next Wednesday, so I thought I could open up a new Growth bond NOW and then fund it next week. However, it seems to be looking for me to provide a debit card payment right now. I thought I might be able to pay in £500 now, and then the balance next week, but the T&Cs also say that I can't top up either. What gives?

Also --- debit card only? How can you fund higher amounts with only a debit card?

I noticed this too as the prevous fix I had matured 1 week after I wanted to apply. Thought there may be an option to open with £500 then top up within 30 days like many, but it didn't seem to be the case for NS&I. 

Fortunately I have an offset mortgage, so was able to borrow the £15K from that for one week at 8.49%.

Also, I thought you could make any size purchase on a debit card providing you had the funds in your account? My 15K went through without a hitch.  

Nova1307

Does anyone know based on historical information whether or not NS&I withdraw growth bonds without any warning or do they normally update their website and provide a date when the product will be withdrawn from the market?

refluxer

M4rtyman said:

I am looking to invest about £30k in the Growth bond before the rates change, but it appears there is no "funding window". My existing bond matures next Wednesday, so I thought I could open up a new Growth bond NOW and then fund it next week. However, it seems to be looking for me to provide a debit card payment right now. I thought I might be able to pay in £500 now, and then the balance next week, but the T&Cs also say that I can't top up either. What gives?

Also --- debit card only? How can you fund higher amounts with only a debit card?

I made a similarly large deposit with a debit card without any issues - I just needed to approve the transaction in my banking app. The alternative is to open a NS&I Direct Saver account and make faster payments into that instead, followed by an internal transfer. This obviously won't help your timing issue though, unfortunately. 

Swipe

Nova1307 said:

Does anyone know based on historical information whether or not NS&I withdraw growth bonds without any warning or do they normally update their website and provide a date when the product will be withdrawn from the market?

I believe they just go or they issue a new version with a new rate.

123monty

Hi, all thanks for all your message and advice. I was fully aware of the T&C when I signed for this product. I am willing to pay a penalty for withdrawing early like I have done with other service providers. NS&I has said that I need to give a very good reason in writing for canceling the bond and they might consider it. 
Let's see what happens, otherwise, I am stuck with my current contract.

ColdIron

123monty said:

NS&I has said that I need to give a very good reason in writing for canceling the bond and they might consider it.

Usually this means things like death, terminal illness, becoming mentally incapacitated, bankruptcy or other exceptional circumstances

Just wanting a better rate is unlikely to sway them, I'd manage your expectations I'm afraid

eskbanker

123monty said:

I was fully aware of the T&C when I signed for this product. I am willing to pay a penalty for withdrawing early like I have done with other service providers.

Where did you see anything in the product terms that suggested that premature access was available with a penalty (as it would be with ISAs for example)?

The prominent product front page seems pretty unequivocal to me:

Can I take money out?

No, you cannot take money out until the Bond reaches the end of its term

as does the Ts & Cs document:

No withdrawals until maturity

A Guaranteed Growth Bond is a fixed-term investment and has to be held for the full term. This means that you won’t be able to reinvest or withdraw your money until it matures. 

and the summary box:

Can I withdraw money?

No, Guaranteed Growth Bonds are a fixed term investment that has to be held for the full term. This means that you won’t be able to access your money until it matures.

and the FAQ:

• Will I be able to access my money early?

  No. Once you invest, you won’t be able to access your money until your Bond reaches the end of its term, but in return you’ll be guaranteed a fixed rate of interest for 1 year.