Interest on NS&I Growth Bond

Silex45

Hello Everyone,

I'm new here and seeking some help as I can't find a direct answer to my question, so I wondered if anyone here had any experience with reinvesting a maturing NS&I growth bond. My question is this, if I re-invest my maturing growth bond will the whole sum of my investment, including the interest I earned be re-invested, or will the interest be paid out and just my original investment be re-invested?

Thank you in advance

Ayr_Rage

You can choose how much you wish to reinvest.

ColdIron

It's up to you, there will be an option with your maturity instructions where you tell them how much to reinvest, withdraw etc

mebu60

Depends which maturity option you select. The default reinvests the total including interest to date. 

Josh_bear

At the moment NS&I are offering another year fixed at 5.15% as part of the one of the options the people above mentioned.  

mebu60

Josh_bear said:

At the moment NS&I are offering another year fixed at 5.05% as part of the one of the options the people above mentioned.  

5.15% not 5.05%? 

Silex45

mebu60 said:

Josh_bear said:

At the moment NS&I are offering another year fixed at 5.05% as part of the one of the options the people above mentioned.  

5.15% not 5.05%? 

Yes, it is 5.15% if you are re-investing a current growth bond that is set to mature.

M4rtyman

Yeah - I had invested in two bonds last year when the rates were at 6.2%. Now about to mature and just received the email asking my preference. As mentioned above, they are currently offering 5.15% to renew for another year, so thinking of cashing out the interest and reinvesting the main balance. I haven't seen any other 1yr fix offering that much - all of them seem to be less than 5%

Washakie

I have a couple of Guaranteed Growth Bonds and a Guaranteed Income Bond (currently paying 6.2%) that mature next month. When I logged into my NSI account earlier this week it said they would automatically renew at 5.15% if I did nothing.  I now notice that the summary box for these bonds state that the renewal rate is now 4.75% for customers renewing a maturing Guaranteed Growth Bond.  Is this the interest rate I will now get when they renew next month?

I have just joined the forum and so it won't let me post a link to the PDF in question.

fourmarks

Check the maturity letter in your account. Mine states that the renewal rate offered(5.15%) will stand even if the rate drops between now and the maturity date.

It also states that if the rates rise before the maturity date then I will receive the higher rate.  Not holding my breath on that one!

ToastLady

I've just checked mine, gone for automatic renewal, and in the summary box it states Guaranteed Rate at 5.15%
Underneath that it states Current Rate at 4.75%. I don't recall seeing the current rate being mentioned before, but all 3 bonds that I have clearly state Guaranteed Rate at 5.15%.
Don't know why they have put current rate on as they currently are not selling 1 year bonds as far as I can see.