Guaranteed Income Bonds - payments lower than they should be?

Gamzatti

I've had Issue 72 6.30/6.02% bonds for the last 12 months which have only ever paid out at around the 5% mark each month. 

I've called NS&I about this and they said the only way for them to look into it was for me to write in about this, no email or phone support could be offered. 

Has anyone else experienced this? I did wonder if interest payments were taxed at source, accounting for lower payments than I expected, but now that I've received my completion statement, that doesn't appear to be the case. 

Any thoughts welcome :-) 

Dazed_and_C0nfused

Gamzatti said:

I've had Issue 72 6.30/6.02% bonds for the last 12 months which have only ever paid out at around the 5% mark each month. 

I've called NS&I about this and they said the only way for them to look into it was for me to write in about this, no email or phone support could be offered. 

Has anyone else experienced this? I did wonder if interest payments were taxed at source, accounting for lower payments than I expected, but now that I've received my completion statement, that doesn't appear to be the case. 

Any thoughts welcome :-) 

Tax definitely isn't deducted at source by NS&I.

But a (0.)5% return is what you can expect to see each month on income bonds.

£10,000 x 6.03% = £603.

£603 ÷ 365 days = £1.652/day

30 day month = £49.56
31 day month = £51.21

Average per month £50.38

Is this what you have been receiving?

lr1277

Dazed_and_C0nfused said:

Gamzatti said:

I've had Issue 72 6.30/6.02% bonds for the last 12 months which have only ever paid out at around the 5% mark each month. 

I've called NS&I about this and they said the only way for them to look into it was for me to write in about this, no email or phone support could be offered. 

Has anyone else experienced this? I did wonder if interest payments were taxed at source, accounting for lower payments than I expected, but now that I've received my completion statement, that doesn't appear to be the case. 

Any thoughts welcome :-) 

Tax definitely isn't deducted at source by NS&I.

But a (0.)5% return is what you can expect to see each month on income bonds.

£10,000 x 6.03% = £603.

£603 ÷ 365 days = £1.652/day

30 day month = £49.56
31 day month = £51.21

Average per month £50.38

Is this what you have been receiving?

@Dazed_and_C0nfused I am confused by your calculation. £50.38 times 12 is £604.56, which is approximately the expected return based on the interest rate shown for £10k.

Are you asking if the OP received less than that monthly figure?

Dazed_and_C0nfused

lr1277 said:

Dazed_and_C0nfused said:

Gamzatti said:

I've had Issue 72 6.30/6.02% bonds for the last 12 months which have only ever paid out at around the 5% mark each month. 

I've called NS&I about this and they said the only way for them to look into it was for me to write in about this, no email or phone support could be offered. 

Has anyone else experienced this? I did wonder if interest payments were taxed at source, accounting for lower payments than I expected, but now that I've received my completion statement, that doesn't appear to be the case. 

Any thoughts welcome :-) 

Tax definitely isn't deducted at source by NS&I.

But a (0.)5% return is what you can expect to see each month on income bonds.

£10,000 x 6.03% = £603.

£603 ÷ 365 days = £1.652/day

30 day month = £49.56
31 day month = £51.21

Average per month £50.38

Is this what you have been receiving?

@Dazed_and_C0nfused I am confused by your calculation. £50.38 times 12 is £604.56, which is approximately the expected return based on the interest rate shown for £10k.

Are you asking if the OP received less than that monthly figure?

Yes, that's the principle.  The op just needs to apply it to their bond value.

And remember there are 12 months in a year.

refluxer

Gamzatti said:

I've had Issue 72 6.30/6.02% bonds for the last 12 months which have only ever paid out at around the 5% mark each month. 

I've called NS&I about this and they said the only way for them to look into it was for me to write in about this, no email or phone support could be offered. 

The rate for those bonds was 6.03% gross / 6.20% AER but don't forget that's per year, not per month so, as mentioned above, you'd expect to get around 6.03% / 12 = 0.5% per month paid out in interest which equates to roughly £5 for every £1000 saved.