Growth v Income Bond - help needed

applepad

I already have an NSandI Income bond and due to poor Premium Bond winnings and falling interest rates decided to withdraw my £30k from Premium bonds and put it in a bond of 2 years.

Am I correct in thinking NSandI compound interest annually? I’ve opened an Income bond now, but wondering if it would be better off in a growth bond instead? Is it a big pain to swap over?

Can someone please help me with the maths? Can’t seem to find the correct interest calculator online.

As I say the money was in Premium Bonds so did not get a regular from it anyway.

So at the 4.6% on the 2 year bond, how much income would I get monthly on £30K?
and how much interest would I earn if I kept the interest in- Growth bond ?

Thank you in advance

RobfromCornwall

You need the summary box from the NSI website:

2-year term, Issue 69 (Growth Bond) (4.6%)
A £1,000 deposit would be worth £1,094.12 at the end of the 2-year term.

(£1094.12 x 30 =£32,823.60)
(£2823.60 / 24 = £117.65)

2-year term, Issue 69 (Income Bond) (4.5%)
A £1,000 deposit would earn £90.08 interest by the end of the 2-year term.

(£90.08 x 30 = £2,702.40)
(£2,702.40 / 24 = £112.60)
(£30,000 + £2702.40 = £32,702.40)

applepad

RobfromCornwall said:

You need the summary box from the NSI website:

2-year term, Issue 69 (Growth Bond) (4.6%)
A £1,000 deposit would be worth £1,094.12 at the end of the 2-year term.

(£1094.12 x 30 =£32,823.60)
(£2823.60 / 24 = £117.65)

2-year term, Issue 69 (Income Bond) (4.5%)
A £1,000 deposit would earn £90.08 interest by the end of the 2-year term.

(£90.08 x 30 = £2,702.40)
(£2,702.40 / 24 = £112.60)
(£30,000 + £2702.40 = £32,702.40)

That’s wonderful, thanks so much

janusdesign

applepad said:

I already have an NSandI Income bond and due to poor Premium Bond winnings and falling interest rates decided to withdraw my £30k from Premium bonds and put it in a bond of 2 years.

Am I correct in thinking NSandI compound interest annually? I’ve opened an Income bond now, but wondering if it would be better off in a growth bond instead? Is it a big pain to swap over?

Can someone please help me with the maths? Can’t seem to find the correct interest calculator online.

As I say the money was in Premium Bonds so did not get a regular from it anyway.

So at the 4.6% on the 2 year bond, how much income would I get monthly on £30K?
and how much interest would I earn if I kept the interest in- Growth bond ?

remember that the income bonds pay interest monthly, but the growth bonds pay interest annually - though I don't think you could access it until the end of the term... so you need to work out whether these bonds are for a regular monthly income or a lump sum at the end of 2 years.

there is also the savings tax allowance situation to consider - e.g whether to effectively split the interest declaration to HMRC (if you need to make one) between multiple tax years (income bonds) or pay it all at maturity in 2026/27 (growth bonds).

What is the personal savings allowance? (moneysavingexpert.com)

with regards to switching, you could send them a secure message, or perhaps during the week, the online live chat will be working and you could use that method to chat with an agent - either way, you'd be well within the cancellation period.