NSI 1 year 6.2% Growth Bonds that are about to mature... take note

CricketLady

Just in case this hasn't already been mentioned (apologies if it has) but in September my 1 year 6.2% NSI Guaranteed Growth Bond is due to mature and having just logged in, I learned that the default setting is to autorenew for the same bond (but with an obviously lower rate).

It is easy enough to change the maturity details to pay out, if that is what you want (I certainly do as I have other plans for the cash!) but I only learned that autorenew is the default setting because I logged in to check, having assumed that I would have requested a payout when I first applied for the account.  The email I received telling me that my account is about to mature states that there is a correspondence for me to read which simply tells me that IF I buy a new bond I'd need to wait until it matures to get the money out (and that there is a 30 day cooling off period).  Nowhere can I see "please set your maturity instructions".

I'm prepared to risk being labelled a silly old bat just in case there is anyone else who might benefit from this post.  

Best wishes 

trickydicky14

It has been mentioned on this site but thanks for the reminder

Slinky

CricketLady said:

Just in case this hasn't already been mentioned (apologies if it has) but in September my 1 year 6.2% NSI Guaranteed Growth Bond is due to mature and having just logged in, I learned that the default setting is to autorenew for the same bond (but with an obviously lower rate).

It is easy enough to change the maturity details to pay out, if that is what you want (I certainly do as I have other plans for the cash!) but I only learned that autorenew is the default setting because I logged in to check, having assumed that I would have requested a payout when I first applied for the account.  The email I received telling me that my account is about to mature states that there is a correspondence for me to read which simply tells me that IF I buy a new bond I'd need to wait until it matures to get the money out (and that there is a 30 day cooling off period).  Nowhere can I see "please set your maturity instructions".

I'm prepared to risk being labelled a silly old bat just in case there is anyone else who might benefit from this post.  

Best wishes 

What rate are they offering?

ColdIron

5.15% if you roll over to another 1 year fix, lower rates for longer terms

dcs34

Worth noting if you do let the balance roll over into the new issue, they will give you a 30 day "cooling off" period to cancel the new issue whilst still paying you any interest earnt in that period.

So if you don't have an immediate plan for the money > 5.15% it may be worth letting it sit for a couple of weeks, and then ask to cash it in.

ColdIron

Also worth noting that if you want to roll over your original deposit but also want to withdraw the interest earned you should not let it default, you should select the 'Combine Your Options' instruction and specify the reinvest/withdrawal split

peter021072

5.05% is the best alternative, so rolling it over at 5.15% is a good deal.  I'm surprised NS&I are offering such a high rate for existing savers whilst rates are dropping.

cwep2

peter021072 said:

5.05% is the best alternative, so rolling it over at 5.15% is a good deal.  I'm surprised NS&I are offering such a high rate for existing savers whilst rates are dropping.

There was a huge influx of cash into this issue at 6.2% if you remember it was the top payer by a big margin at the time of issue. If they offered an easily beaten rate at renewal the vast majority would cash in and move it elsewhere. Then the govt would have to raise that cash elsewhere as NS&I is effectively one source of government borrowing. 

Just as 6.2% looked a great rate at the time, and turned out to be much better than waiting for easy access rates to keep going up, I think 5.15% will turn out to look pretty good over the the next 12 months and I’m planning to renew what I can afford to do. 

ToastLady

Shooosh, I'm still waiting for another bond from them to mature and hoping that I can get the same rate.

Daz2009

peter021072 said:

5.05% is the best alternative, so rolling it over at 5.15% is a good deal.  I'm surprised NS&I are offering such a high rate for existing savers whilst rates are dropping.

5.16% is the best 1 year fixed rate I can find so it's a no brainer to renew at 5.15%

sausage_time

Maturity letter just arrived (e-mail notification) for 8th Sept maturity.  5.15% still on offer.  Pleased with that.