NS&I Guaranteed Income Bond - when do you start earning interest?

ironmongem

Question about opening one of these accounts…

You need a debit card when you apply, which suggests that the cash will leave your current account when you apply. They they aim to have your account open in 7-10 days, so do you start earning interest immediately, or after 7-10 days when the account is opened?

Swipe

Interest is earned from the day you enter your card details rather than when it eventually clears.

ironmongem

https://forums.moneysavingexpert.com/discussion/comment/82109624#Comment_82109624

Thanks.

I opened an account yesterday. I received confirmation today that they've opened the account, and my investment date is yesterday.

vadek

Slightly off topic but I thought I might get a reply here — I'm selling a property and will want to open one of these GI bonds with over £120K. Obviously I can't do that with a debit card, so how do I apply for and open the bond? The NS&I website is pretty useless regarding how to apply and finance one of these bonds.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82120108#Comment_82120108

When making debit card payments to savings institutions in excess of my daily limit ( £25,000), I visit my nearest Lloyds bank branch who are able to authorise a debit card faster payment up to £250,000 for the day.

Depending on your own bank's limit, that could be a possible option.

Alternatively, although you cannot top up an exsisting guranteed bond it seems you are free to buy multiples thereof whilst they remain on sale, so daily purchases up to your debit card limit is another option. Each will of course have their own maturity date.

lr1277

About 7 years ago, I made a 50k payment to NS&I using my debit card. I think the limit depends on your bank.

If you want to pay more than the debit card limit, you can use your bank's FP system assuming it has a higher limit than your debit card. Or you can make multiple debit card payments assuming the account allows it.

Or the alternative for a transfer greater than the FP limit is to use a CHAPS payment but that costs money and some banks expect you to visit a branch to make the transaction. Which is annoying as branches are being closed.

If the account only allows one payment, one workaround is to fund a NS&I direct saver account with however many payments. Then open your desired account and fund it from the direct saver.

Swipe

If the account only allows one payment, one workaround is to fund a NS&I direct saver account with however many payments. Then open your desired account and fund it from the direct saver.

The downside to the direct saver via debit card method is that it takes 10 days for the payments to clear

lr1277

https://forums.moneysavingexpert.com/discussion/comment/82120226#Comment_82120226

Did not know that. Thanks.

vadek

https://forums.moneysavingexpert.com/discussion/comment/82120130#Comment_82120130

Thanks for that. I've been doing more investigation. I don't understand why NS&I let you do a bank transfer into Premium Bonds but not British Savings Bonds, for which they expect you to use a debit card - or a cheque! Doesn't make sense. So it looks like I'll have to apply for two bonds and then trek to the bank in order to populate them. Luckily there are still physical banks in my town, or I'd be screwed. Thanks again, poseidon1.

vadek

Cheers lr1277. The bank would do a transfer for free, but NS&I doesn't allow transfers. No need for CHAPS. I did consider multiple 25K transfers (one per day) but I'm pretty sure the bank would flag that as suspicious. Interesting idea to build up a direct saver and then transfer across to an income bond. I might just try that option. Thanks lr1277.