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  • FIRST POST
    • Catswhiska
    • By Catswhiska 10th Feb 18, 9:10 AM
    • 56Posts
    • 44Thanks
    Catswhiska
    NS&I. How long to invest
    • #1
    • 10th Feb 18, 9:10 AM
    NS&I. How long to invest 10th Feb 18 at 9:10 AM
    I have a good lump sum to invest after selling an inheritanced house. I am looking at NS&I guaranteed income bonds. In view of predicted rate rises do I go for 3 years at 2.15% or a year at 1.45%. We donít need to access the money.
Page 1
    • Audaxer
    • By Audaxer 10th Feb 18, 9:27 AM
    • 1,019 Posts
    • 590 Thanks
    Audaxer
    • #2
    • 10th Feb 18, 9:27 AM
    • #2
    • 10th Feb 18, 9:27 AM
    If you don't need access to the money, the NS&I Guaranteed Growth Bonds may be a better option as 2.2% for 3 years or 1.5% for 1 year. There is only a 90 day interest penalty on any early withdrawals, so if you go for the 3 year bond and need to take the funds out after a year, I think you would still earn more with the interest penalty than the matured one year bond.
    • Neil Jones
    • By Neil Jones 10th Feb 18, 9:40 AM
    • 1,234 Posts
    • 715 Thanks
    Neil Jones
    • #3
    • 10th Feb 18, 9:40 AM
    • #3
    • 10th Feb 18, 9:40 AM
    The Growth bond mentioned above is capped at £3000 maximum and you can only have one of them.

    The Guaranteed Income Bonds mentioned by the OP also does allow early withdrawal subject to 90 days, the vast majority of NS&I products work this way. But you can have multiples of them.

    Can I withdraw money?

    Yes, before the end of the term you can cash in all or part of your Bond online, by phone or by post with no notice. We will deduct a penalty equal to 90 days interest on the amount you cash in. This means that if you cash in within 90 days of buying your Bond, you'll get back less than you invested. You need to keep a balance of at least £500 to keep your Bond open.
    by https://www.nsandi.com/guaranteed-income-bonds
    This works out to an interest penalty of about £16 for every £3k IIRC.
    • Catswhiska
    • By Catswhiska 10th Feb 18, 9:48 AM
    • 56 Posts
    • 44 Thanks
    Catswhiska
    • #4
    • 10th Feb 18, 9:48 AM
    • #4
    • 10th Feb 18, 9:48 AM
    If you don't need access to the money, the NS&I Guaranteed Growth Bonds may be a better option as 2.2% for 3 years or 1.5% for 1 year. There is only a 90 day interest penalty on any early withdrawals, so if you go for the 3 year bond and need to take the funds out after a year, I think you would still earn more with the interest penalty than the matured one year bond.
    Originally posted by Audaxer
    Want the monthly income, hence looking at this one
    • msallen
    • By msallen 10th Feb 18, 9:52 AM
    • 775 Posts
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    msallen
    • #5
    • 10th Feb 18, 9:52 AM
    • #5
    • 10th Feb 18, 9:52 AM
    The Growth bond mentioned above is capped at £3000 maximum and you can only have one of them.
    Originally posted by Neil Jones
    Close. It's capped at £1m and you can have as many as you want up to that total.
    • Audaxer
    • By Audaxer 10th Feb 18, 9:52 AM
    • 1,019 Posts
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    Audaxer
    • #6
    • 10th Feb 18, 9:52 AM
    • #6
    • 10th Feb 18, 9:52 AM
    The Growth bond mentioned above is capped at £3000 maximum and you can only have one of them.
    Originally posted by Neil Jones
    No it's not. The new Guaranteed Growth Bond they launched in November has a maximum investment limit of £1m.
    • Audaxer
    • By Audaxer 10th Feb 18, 9:57 AM
    • 1,019 Posts
    • 590 Thanks
    Audaxer
    • #7
    • 10th Feb 18, 9:57 AM
    • #7
    • 10th Feb 18, 9:57 AM
    Want the monthly income, hence looking at this one
    Originally posted by Catswhiska
    Same applies to the Guaranteed Income Bonds - that it would be better going for the 3 year option even if you need the money after a year.
    • ColdIron
    • By ColdIron 10th Feb 18, 10:02 AM
    • 4,042 Posts
    • 4,992 Thanks
    ColdIron
    • #8
    • 10th Feb 18, 10:02 AM
    • #8
    • 10th Feb 18, 10:02 AM
    No it's not. The new Guaranteed Growth Bond they launched in November has a maximum investment limit of £1m.
    Originally posted by Audaxer
    That's right, it's the old Investment Guaranteed Growth Bonds that have the £3,000 cap. Silly name as it's a cash product
    • dont_use_vistaprint
    • By dont_use_vistaprint 10th Feb 18, 11:36 AM
    • 49 Posts
    • 18 Thanks
    dont_use_vistaprint
    • #9
    • 10th Feb 18, 11:36 AM
    • #9
    • 10th Feb 18, 11:36 AM
    I think what you are asking is the likelihood of making more interest with 1+3 , not advice on penalty charges or bond types ...

    Personally, right now I'd go for one year.
    • Catswhiska
    • By Catswhiska 10th Feb 18, 11:55 AM
    • 56 Posts
    • 44 Thanks
    Catswhiska
    I think what you are asking is the likelihood of making more interest with 1+3 , not advice on penalty charges or bond types ...

    Personally, right now I'd go for one year.
    Originally posted by dont_use_vistaprint
    Yes my thoughts if rates rise in the next year? will they exceed the 2.15% offered now within the 3 years though.
    • ColdIron
    • By ColdIron 10th Feb 18, 12:06 PM
    • 4,042 Posts
    • 4,992 Thanks
    ColdIron
    The point others are making is that if you take out the 3 year option at 2.15% and cash them in after 1 year you are still getting a better rate of interest (the equivalent of about 1.6%) than the 1.45% offered on the 1 year option. The penalty reduces further the longer you keep them
    Last edited by ColdIron; 10-02-2018 at 12:11 PM.
    • Catswhiska
    • By Catswhiska 10th Feb 18, 12:26 PM
    • 56 Posts
    • 44 Thanks
    Catswhiska
    The point others are making is that if you take out the 3 year option at 2.15% and cash them in after 1 year you are still getting a better rate of interest (the equivalent of about 1.6%) than the 1.45% offered on the 1 year option. The penalty reduces further the longer you keep them
    Originally posted by ColdIron
    That explains things and was the answer I was looking for. Many thanks
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