NSI Guaranteed Income and Growth bonds back

lr1277

Not seen this elsewhere on this forum. Not the highest rate, but maybe useful to some.

Kim_13

4.15% for 3 years (4.07% for the GIB.) They would tax it all in Year 3, so it would likely be best for most to take the income version and have it paid to an external account, thus splitting the interest over three tax years.

lr1277

At the risk that we see posts saying words to the effect of my debit card can't fund this account, I suggest the following:

Most debit cards have some kind of maximum transaction amount. If you want a guaranteed bond acount which is less than this amount, then fine, go ahead and open the account and fund it with your debit card.

If the amount you want to put into the guaranteed bond is more than your debit card limit I would suggest the following steps:

Open a direct saver account and partially fund it with your debit card.

Then do a bank transfer to the direct saver. Put in enough that will allow for the amount you want to put into the guaranteed bond plus a little bit more.

Then open the guaranteed bond and fund it from the direct saver. Up to you as to whether you leave anything in the direct saver or close the account.

km1500

what are your views on interest rates falling - for example 4.15 may not be competitive now but in a year's time it might look pretty good?

gravel_2

km1500 said:

what are your views on interest rates falling - for example 4.15 may not be competitive now but in a year's time it might look pretty good?

You can currently fix for 5 years at around 4.5% with other banks. The offering here, in your scenario, would make  more sense if you had shed loads of cash and were worried about banks failing.