Guaranteed income bonds cash in?

sapphirewaters1616

Hi there, does anyone on here have an NS&I guaranteed income bond fixed for 1 year? It says everywhere that you have to keep the bond until maturity. But can you still cash in a portion of the bond?

When i go to my dashboard on their website, i scroll down to my GIB and there is a “cancel” button. I click on it and the next page shows my balance and available balance. The available balance is £500 less than the balance. It gives me the option to put an amount in, it has my bank account details on it, and then there’s a “cash in” button at the bottom. Does this mean it will allow me to take money from my bond? 

I don’t want to test it as I’m not sure if i want to cash any in yet. But i wanted to know if anyone has cashed in any of their GIB as i was under the impression you couldn’t touch it until maturity, but not sure why I would have a “cancel” button or “cash in” button. I have had the bond 6 months already. Thank you for any information. 

Warslet

You need to keep the Bonds until maturity for Bonds held from 1 May 2019. I don’t know for certain but the cancel and cash in options could be for reinvested Bonds as there is a 30 day period to cancel once reinvested. 

sapphirewaters1616

Thanks for your reply. The cancel option has been there from day one, so it’s very confusing. I haven’t reinvested any.

sapphirewaters1616

Can anyone else help please?

Swipe

As mentioned, you have to keep the bond for the term agreed unless you cancel within the first 30 days. Their web portal is not clever enough to remove the cancel button after 30 days. So if you've held them for longer than 30 days you are stuck with them until maturity, as per the terms and conditions you agreed to when taking them out.

cherryade44

Does anyone know when tax on the interest  is calculated on the NS&! growth bonds. If you kept reinvesting over many years would it be when you finally cashed them in or at each maturity time, thanks for any advice

wmb194

cherryade44 said:

Does anyone know when tax on the interest  is calculated on the NS&! growth bonds. If you kept reinvesting over many years would it be when you finally cashed them in or at each maturity time, thanks for any advice

What does the summary say? "The interest you earn on Guaranteed Growth Bonds will count towards your taxable income in the tax year your Bond matures." So at every maturity.

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

cherryade44

wmb194 said:

cherryade44 said:

Does anyone know when tax on the interest  is calculated on the NS&! growth bonds. If you kept reinvesting over many years would it be when you finally cashed them in or at each maturity time, thanks for any advice

What does the summary say? "The interest you earn on Guaranteed Growth Bonds will count towards your taxable income in the tax year your Bond matures." So at every maturity.

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

Thanks very much 

sapphirewaters1616

Okay, so if i hit the cancel button, and then the “cash in” button, what would happen, would it just come up with an error message or something? Thank you.

boingy

If you want to cash them in then try it. I think it will not work because of those product T&Cs.
If you don't want to cash them in then stop playing with the cancel button!

CarolineMary

I’ve got a green bond with NS&I. It was taken out when interest rates were very low and it’s only £500 anyway. But it is a 3 year bond, so it is still there. 

Last year I got a letter from them. They apologised for misreporting my interest income to HMRC when according to their T&C and the law it’s only liable for tax at maturity. I did exceed my £1000 savings allowance last year, but since this was £3 the worst case scenario is I’ve overpaid by 60p.

So National Savings can and did get it wrong, although hopefully they’ve learnt now and you won’t have the same issue.