NS&I Guaranteed Income Bonds - What term would you choose?

n3ophyte

1 Year - 4.99% AER

https://forums.moneysavingexpert.com/discussion/comment/82160151#Comment_82160151

Thanks for the tip-off re: NS&I fixed rates @RangeRat. I’ve just done the same👍️

Wonder if they’ll go up again within the next 30 day🤔

Kim_13

1 Year - 4.99% AER

I’ll only fix for more than 1 Year if it is 6%+, given there is no possibility of playing the numbers game as there is with an ISA.

DRS1

5 Years - 5.17% AER

Well I just went for the highest rate. You are putting all the money away now so if the rates go up in the next 30 days or 6 months it really doesn't matter you can't get the money out of the 1 year bond. What will rates be in a year's time - who knows but they may be on their way back down and in the meantime you have given up 0.2% or so of interest.

Heytheremrblue

https://forums.moneysavingexpert.com/discussion/comment/82160428#Comment_82160428

Me as well but I'm happy with the rate I have that's just how you have to look at it.

snookerloopy96

1 Year - 4.99% AER

Hardly ever think longer term than 12 months but thats a combination of me being me plus my personal situation.

Tbh I think with those figures 12 months is the better offer anyway.

masonic

I wouldn't opt for any of these, but in general, I wouldn't be fixing for more than a year right now. What looks good now, may not next year.

LHW99

5 Years - 5.17% AER

https://forums.moneysavingexpert.com/discussion/comment/82160703#Comment_82160703

Agreed, and while rates may go up in the next year or so, they could come own again before the end of 5 years. Average inflation from 1900 to 2024 has been 4.11%pa https://en.icalculator.com/current-and-historical-inflation-rates.html

So getting 5.17% is above that, and as we are talking only about NS&I seems the best option to me. Away from that you could certainly look for better.

DRS1

5 Years - 5.17% AER

I should add that one thing which influenced me was that this was a Guaranteed INCOME Bond and not a Guaranteed GROWTH Bond. I wouldn't be happy with all the interest landing (and being taxed) in year 5.

subjecttocontract

Just to add some perspective here ......the difference between a 1 year income bond & a 5 year income bond is £1.50 interest a month per £10K in saving. That amount of difference wouldn't persuade me to tie up my money for 5 years.