Saving bonds that allow change of monthly interest payment methods

Gray001

Hi all,

So i just had a 53k bond matures, have maxed out ISA for this year and am now looking to buy 1,2,3 and 5 year bonds. I think rates still have room to creep up a bit higher. One thing has occurred to me I think is beneficial, some providers like RCI Bank allow you to chnage your payment interest method at any point during the bond I.e. if you select monthly interest and have it compounded - you can at anytime chnage that option and have it paid to nominated account. I believe this is an excellent option to have as a option incase really needed. Does anyone know if Jodge bank, GB Bank allow the same options? Is anyone aware of other providers that permit this?

Newbie_John

What's your goal here? Shifting interests to different tax year?

Gray001

https://forums.moneysavingexpert.com/discussion/comment/82032971#Comment_82032971

Not my primary thought, but I suppose getting monthly interest will help mitigate a bit the increase in interest tax over PSA next year.

My main motivation for this, us picking longer term fixes monthly interest, incase financial circumstances change and I find myself needing more money for whatever reason - I can simply change the settings within the bond and stop the monthly compounding and have it paid straight to nominated account. Its just really an option to have for extra peace of mind, but hopefully never have to use it

Newbie_John

Very niche case then. In your situation we're talking about £200/month.

What about putting £50k to best fixed one and leave interests compound and put £3000 to easy access account? For any shortfalls?

InvesterJones

Ford allow this flexibility, both where the interest is paid and whether it's annual or monthly.

ZeroSum

Atom are really good for this sort of thing. Can even choose what day you want it paying