British savings bonds

Swipe

And you get taxed in one single tax year at maturity. No thanks.

hpas251

Didn't National Savings (as they were then known) offer a product called British Savings Bonds years ago? I remember seeing a list of interest rates for withdrawn products. IIRC British Savings Bonds were listed as a product which received no interest whatsoever, whereas some other withdrawn/matured products received something like 0.01%.

InvesterJones

Altior said:

They do yes, the plain old Green Savings Bonds moniker to appeal to climate alarmist types was not enough to deflect away from the dismal rates on the table. It's all about the rate, compared to the wider market, whatever the issues are called.

You could lock in 5.7% for three years at one point with green savings bonds, which while not market-leading, wasn't too bad.

pafpcg

hpas251 said:

Didn't National Savings (as they were then known) offer a product called British Savings Bonds years ago? I remember seeing a list of interest rates for withdrawn products. IIRC British Savings Bonds were listed as a product which received no interest whatsoever, whereas some other withdrawn/matured products received something like 0.01%.

Yes.  My partner & I invested £100 & £40 respectively in January 1971.  The interest rate was 7%.

gravel_2

Swipe said:

And you get taxed in one single tax year at maturity. No thanks.

Does not appear to be correct:

"With our Guaranteed Growth Bonds, we’ll add the interest to your Bond each year so it grows in value.

With our Guaranteed Income Bonds, we’ll pay the interest to your bank account each month."

hallmark

I'm sure I'm being stupid but I don't see any way in which these "British Bonds" appear different than other bonds offered by NSANDI?

Albermarle

gravel_2 said:

Swipe said:

And you get taxed in one single tax year at maturity. No thanks.

Does not appear to be correct:

"With our Guaranteed Growth Bonds, we’ll add the interest to your Bond each year so it grows in value.

With our Guaranteed Income Bonds, we’ll pay the interest to your bank account each month."

The latter statement is clear.

However with the former the fact that it is added yearly does not prove anything, as it is when it is reported to HMRC that matters.
There is a lot of variation in the market as to when providers report interest on multi year fixes. It is a grey area and HMRC seem as confused as anyone else, often giving contradictory answers.
I think though that what @Swipe is saying is that NS&I do only report the interest to HMRC at the end of the fixed term when it is available for withdrawal, regardless of when the interest is actually added to the account.

InvesterJones

hallmark said:

I'm sure I'm being stupid but I don't see any way in which these "British Bonds" appear different than other bonds offered by NSANDI?

Currently the only 3-year fixed bonds you can get from NSANDI are the green savings bonds, but if you hold your nose at 'woke' investment then you may prefer these british bonds which will presumably be able to fund oil and banking

auser99

gravel_2 said:

Swipe said:

And you get taxed in one single tax year at maturity. No thanks.

Does not appear to be correct:

"With our Guaranteed Growth Bonds, we’ll add the interest to your Bond each year so it grows in value.

With our Guaranteed Income Bonds, we’ll pay the interest to your bank account each month."

Those are different to the "Green" 3 year bond, which peaked at 5.7%. 
An NSI advisor confirmed to me those are taxable in the maturity year, not each year.

Maybe they were wrong. I hope not!

Hoenir

auser99 said:

gravel_2 said:

Swipe said:

And you get taxed in one single tax year at maturity. No thanks.

Does not appear to be correct:

"With our Guaranteed Growth Bonds, we’ll add the interest to your Bond each year so it grows in value.

With our Guaranteed Income Bonds, we’ll pay the interest to your bank account each month."

Those are different to the "Green" 3 year bond, which peaked at 5.7%. 
An NSI advisor confirmed to me those are taxable in the maturity year, not each year.

Maybe they were wrong. I hope not!

They are right. The interest shown on the NSI portal is notional.