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Ns&i Bond Renewal

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Just had my NS&I Guaranteed Growth Bond renewal in the post.

Previously the rate was 3.95%, the renewal rate is 2.2% :(

The upside (sort of) is that if you sign up for the 5yr Growth Bond you'll get 3.9%

The good thing with NS&I bonds is that unlike most bonds you can withdraw your money (subject to losing 3 months interest)

Seems like a good use for that STR fund where you may need the money quickly but failing that your money is safe and getting a "reasonable rate" (yes, I know it's rubbish, but compared to other product).

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Just had my NS&I Guaranteed Growth Bond renewal in the post.

Previously the rate was -0.85%, the renewal rate is -2.6% :(

The upside (sort of) is that if you sign up for the 5yr Growth Bond you'll get -0.9%, assuming RPI doesn't go any higher in five years.

Fixed that for RPI for you, just for a sense of perspective.

I'd like to remind people that we used to be able to get RPI + 1.0% with the three and five year index linked certificates.

"Savers" are being robbed, which is why we are nearly all out of cash now.

Edited by NotMyHouse

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Fixed that for RPI for you, just for a sense of perspective.

Yep, that's why I said it was rubbish.

However an STR fund only "devalues" (what you can get for your money) when house prices rise, or there's RPI levels of wage rises, which isn't the case.

But then what are the alternatives ?

Edited by exiges

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Just had my NS&I Guaranteed Growth Bond renewal in the post.

The upside (sort of) is that if you sign up for the 5yr Growth Bond you'll get 3.9%

The good thing with NS&I bonds is that unlike most bonds you can withdraw your money (subject to losing 3 months interest)

So to clarify were NSI offering you a taxable 3.9% FIXED cash rate with no strings except for 90 days loss of interest if you

withdraw in those 5 years ??

Edited by grey shark

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So to clarify were NSI offering you a taxable 3.9% FIXED cash rate with no strings except for 90 days loss of interest if you

withdraw in those 5 years ??

Yes.

After receiving my renewal offer I've shopped around, and while there are other products with better rates (Birmingham Midshires offer 4.6%) they really sting you if you want to take your money out, from either a full years lost interest or flatly refusing withdrawals.

Given rates maybe going up (and therefore I want to move the funds away) or I may want to buy a house, I can handle losing up to 3 months interest (the time it'd take to find a house, exchange + complete) , but not an entire year.

Plus your money is with the Govt, so "safe"

Edited by exiges

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There is a separate white leaflet with interest rates on offer in it. I think it was 1,2,3 or 5 year rates and you just fill in the form with the year you have chosen.

Phoned up and been quoted

1 yr 2.15

2 yr 2.70

3 yr 3.20

5 yr 3.80

When I described the rates as pathetic she told me "we have too much money".

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I just received similar notification this morning: 1-yr down from 3.9% to 2.2%.

I think I may vote with my feet (5-yr 3.9% notwithstanding) and try out Santander's 1-yr Tracker Bond (giving 2.5% -- or 2.75% for Santander current-account-holding customers -- above BoE base rate for a year).

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Phoned up and been quoted

1 yr 2.15

2 yr 2.70

3 yr 3.20

5 yr 3.80

When I described the rates as pathetic she told me "we have too much money".

Those are definitely slightly lower than the rates in the correspondence from them that I received -- it was 2.2% for 1-yr and 3.9% for 5-yr.

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Those are definitely slightly lower than the rates in the correspondence from them that I received -- it was 2.2% for 1-yr and 3.9% for 5-yr.

I had the monthly interest option so my rate was 3.85% not 3.95%. Perhaps that's why the rate I was quoted is lower?

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I just received similar notification this morning: 1-yr down from 3.9% to 2.2%.

I think I may vote with my feet (5-yr 3.9% notwithstanding) and try out Santander's 1-yr Tracker Bond (giving 2.5% -- or 2.75% for Santander current-account-holding customers -- above BoE base rate for a year).

Axe-grind mode fully engaged: Santander have managed to munch through all the interest I've earned from them this year in incorrectly charged fees. What I'm basically saying is that I would sooner take the 2.2% from NS&I than have anything to do with Santander. Financial Ombudsman claim ahoy, though with a 22% success rate I'm not holding too much hope... Perhaps I'll call the charges my idiot-charge for being stupid enough to bank with them.

I'm going to put my NS&I loot into their 5 year thingie I reckon.

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Axe-grind mode fully engaged: Santander have managed to munch through all the interest I've earned from them this year in incorrectly charged fees. What I'm basically saying is that I would sooner take the 2.2% from NS&I than have anything to do with Santander. Financial Ombudsman claim ahoy, though with a 22% success rate I'm not holding too much hope... Perhaps I'll call the charges my idiot-charge for being stupid enough to bank with them.

I'm going to put my NS&I loot into their 5 year thingie I reckon.

If I go for the 3.90 presumably 3.80 for monthly I would hate to think that it would still be there in 5 years time. Surely rates must be better well before that matures?

I'm thinking that the best easy access is 2.9% so if I go for the 3.9% I need to keep it there for a year or else I lose some interest. Then if I withdraw the 90 day interest loss lowers it to 2.94% (90/365 x 3.90). It becomes a better deal the longer easy access rates don't improve after the year. One plus is that the money isn't in a bank so they can lend it out for mortgages - not sure if it really works like that but it makes me feel better.

One possible downer on it is that NS&I could be faced with lots of money being withdrawn with the drop from 3.95 to 2.2 - so then they might offer a new product on better terms. Inflation should be up in the New Year with the 20% VAT rise and they should increase rates - but recent events imply they don't care!

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  • 149 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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