The name’s Bond... NS&I Guaranteed Growth Bond!!

Well, Miss Moneypenny would certainly be impressed with the recent issue from National Savings & Investment. The newest recruit in savings, backed by Her Majesty’s Government, is the 65+ Guaranteed Growth Bond.

Those aged 65 and over, who have had to put up with the miserly rates of interest paid on savings over the last couple of years, now have the chance to secure 2.8% (over 1 year) or 4% (over 3 years) from £500 up to £20,000 of their capital. This is great news!

The returns are not tax-free, as with NS&I Certificates, and there is a loss of 90 days’ interest if you cash in before the end of the fixed term. However, even allowing for this, the net amount payable is still likely to be more than the average instant access bank or building society account would pay. Just do the maths before you discount it because of the ‘fixed term’ label.

The bad news is that you’ll need to have the agility and dogged determination of James Bond, along with the gadgets of Q, if you want to apply. There has been such a demand that NS&I was still not able to offer online applications two days after the launch.

Very much like Odd Job in Goldfinger it looks as if it ‘…blew a fuse’! The telephone number provided in their literature is also constantly engaged. Potential customers still have the option to complete a postal application but there’s no guarantee that the Issue won’t be fully subscribed by the time that your letter gets to its destination……even if you decide to drive there in your Aston Martin!

If you would like to discuss your financial planning options, please contact us with any questions you might have. You can do this by calling our head office on 0131 220 0000, or by emailing us at enquiries@carbonfinancial.co.uk. or you can also follow us on Facebook, Twitter or LinkedIn.

Photo by Alan Light