NSI Growth Bonds...maturing

Ciprico

We, like I assume many on here have NSI Growth Bonds about to mature...

The lower renewal interest of 5.15% seems OK for a further year, for a no hassle, risk free savings
account. Is there any reason not to click and continue...?

(Could NSI reduce/stop this renewal rate, as they did with last years 6.2% offering when they recieved enough...?)

mebu60

If you've had the letter then the 5.15% is set.

NS&I could reduce the renewal rate for subsequent 6.2% maturities yet to receive their letter but you'd hope they did the maths at the start of the process and allowed for the likely rate reduction last Thursday. 

auser99

I logged in to make sure I selected this 5.15% rate, only to find that the default maturity option is straight into the 1 year at 5.15%. So even easier.

InvesterJones

Ciprico said:

Is there any reason not to click and continue...?

You're the only one you can answer that really - if another 1 yr fix is the appropriate choice for that money for you then it's only a little behind the top rates.

ScarletBea

auser99 said:

I logged in to make sure I selected this 5.15% rate, only to find that the default maturity option is straight into the 1 year at 5.15%. So even easier.

Same here, especially when I see that the rate available to new applications is just 4.6%!

dcs34

5.15% renewal still being offered today.

Worth noting that NS&I have a habit of offering better rates for maturing/renewal accounts compared to those opening new accounts (IIRC during Covid their 1-year bond renewals were very attractive but not available to people without a maturing account of the previous issue). Therefore it may be worth renewing even a small amount just to stay 'in' the system, so to speak.

minority

I'm also trying debate whether to stick with the new 1 year bond.

Can I split the money I have enough invested that I will need pay tax on it so I was thinking of moving 20k into my isa to make it tax free either my cash or in my stock and share isa then keep remainder to role over.

It pretty crap that you can only make 500/1000 in interest before goverment want their cut...unless I got the maths wrong.

eskbanker

minority said:

It pretty crap that you can only make 500/1000 in interest before goverment want their cut

Up to 2016 that figure was zero....

Bazzalona13295

I've got 2 bonds and will cash them both in to use for my ISA and various regular savers if and when necessary.

5.15% is good but its not tax free and the RS are 6,7,8 and 10%.

Dazed_and_C0nfused

minority said:

I'm also trying debate whether to stick with the new 1 year bond.

Can I split the money I have enough invested that I will need pay tax on it so I was thinking of moving 20k into my isa to make it tax free either my cash or in my stock and share isa then keep remainder to role over.

It pretty crap that you can only make 500/1000 in interest before goverment want their cut...unless I got the maths wrong.

You seem to be overlooking the remarkably generous ISA rules!

minority

Not over looking them I used my 20k isa limited last year I use it again this year which will reduce my tax burden for following year.

I then possibly fill my isa following year depending how my finances go.