NS&I Guaranteed Growth Bond Cancellation

kjs31

How long do NS&I take to repay funds if bonds are cancelled within 30 days? I understand that they pay interest but I couldn’t see the timings anywhere. I have taken a punt and bought some on the basis that a probate house sale will top up my readily accessible cash savings soon but the sale looks a bit dodgy currently. Thanks! 

Doctor_Who

They say the refund will be within 14 days of cancellation on the website (under 'What if I change my mind?').

https://www.nsandi.com/products/guaranteed-growth-bonds

kjs31

Blimey! Wonder if they pay interest until the day they process the refund or the day you ask to cancel because 14 days interest is quite a chunk to lose. 

Stanley_St

When I cancelled today, I am promised payment by close of business in two days' time.  The interest they will provide seems to have been calculated up until the day the payment is made.

The 30 day cancellation period allows these bonds to be used for short term savings, and I must say I have no intention of keeping them for one year 

DavidAC

I would have thought they would refuse to open a new account if you keep cancelling, then opening a new one.

kjs31

Stanley_St said:

When I cancelled today, I am promised payment by close of business in two days' time.  The interest they will provide seems to have been calculated up until the day the payment is made.

The 30 day cancellation period allows these bonds to be used for short term savings, and I must say I have no intention of keeping them for one year 

Thanks! Please report back! 

cwep2

Interested in this too. If you think there is a possibility these rates are the highest we will see and in a year available rates will be lower, you can open one, if in 25-26 days time it's still being offered at the same rate, cancel and fund a new one, effectively extending the term to approximately 13 months. Repeat a month later maybe get 6.2% for 14 15 16 months.

You (maybe?) lose the interest for time it takes to pay you after cancelling the bond, it it's 1-2 days this is probably acceptable to some, if they pay you interest until the day they credit your account even better, but if it's 14 days at 0% interest then this is probably pointless exercise. 

cwep2

I am watching Gilts also, as I have a GGB opened a couple of weeks ago, and will pay 20% tax on interest. We are quite close to the point where buying the TN25 Gilt (maturing 31Jan2025) is >4.96% yield - its currently about 4.90% but when I took out the GGB it was 4.7-4.75% so not worth while. If it crosses over I would be tempted to cancel the GGB and buy the Gilt instead.

Stanley_St

kjs31 said:

Stanley_St said:

When I cancelled today, I am promised payment by close of business in two days' time.  The interest they will provide seems to have been calculated up until the day the payment is made.

The 30 day cancellation period allows these bonds to be used for short term savings, and I must say I have no intention of keeping them for one year 

Thanks! Please report back! 

All worked well for me.  I cancelled on Monday, and the payment was received in my bank account early today (Wednesday).  The interest payment seems to cover up to the day of receipt of payment (rather than when the bond was cancelled).  Another bond bought today without any problem, and I aim to cancel it in the next 30 days.  

This NS&I product is a good way to park funds for the short-term at a market-leading rate.