Granny Bonds

[Mervyn and Trish]

The website, which is still poorly, has a notice basically saying" don't panic, we expect these bonds to be available for months rather than weeks".

I don't see, therefore, there can be any question of scaling back applications once they've accepted people's money, or making those who apply early wait months and then saying you can't have them.

It's not like a share issue, which has a closing date, where they do do that. I think it's simply first come first served. Anyway I'll let you know. Our application's gone in by post.

[Manoverboard]

By post you say ... the report I read recently did suggest that going online was, by some margin, the best option and that using the Postal system could potentially result in disappointment ... but I do wish you the best of luck with your application.

[Mervyn and Trish]

Well given it's still pretty much impossible to get in via the website, and taking heart from their "months rather than weeks" statement, I'm keeping fingers crossed my First Class envelope may get there before the cyber monkeys untangle their knickers!

But if all else fails I still have other Plan B's which are better than the expiring ISA.

[Silver_Shiney]

Merv, I found that rate through money supermarket.com

[Onelife]

I think you would all get a better return for your money by placing a bet on 'Road to Riches in this years Cheltenham Gold Cup.

[kaymar]

Is anyone else considering the new Granny Bonds - or will they when the NS&I website starts working properly again?

Yes, full allocation for both terms on line 9 am yesterday morning. Good return in today's market, 100% safety. It's the first time being old has been of benefit.

[towny44]

NSI website now fully functional and has just gobbled up the money for the first of my wifes 2 bonds. Will wait till daybreak to do the next.

[Manoverboard]

I did hear tell that there's sacks n sacks of post as yet to be handled and that there is talk of putting it in a black hole some place til all the online applications have been dealt with

[Manoverboard]

It seems strange that they do not allow you to submit a R85 form and claim the interest to be paid gross.
Brian

Perhaps they are utilising new software for this provision and ' opting out ' of the Tax is not catered for, bit of a rush job ?

[towny44]

It seems strange that they do not allow you to submit a R85 form and claim the interest to be paid gross.
Brian

Perhaps they are utilising new software for this provision and ' opting out ' of the Tax is not catered for, bit of a rush job ?

Nope, apparently NS&I have never been in the R85 system.

[Manoverboard]

It seems strange that they do not allow you to submit a R85 form and claim the interest to be paid gross.
Brian

Perhaps they are utilising new software for this provision and ' opting out ' of the Tax is not catered for, bit of a rush job ?

Nope, apparently NS&I have never been in the R85 system.

You are correct, well done that man

[towny44]

Second installment just completed, all we need now is a clean identity check for my wife and hopefully its all systems go.
If interest rates do increase rapidly over the period then it will have been a wrong call, but with inflation almost zero and growth everywhere stalled it seems unlikely.

[Mervyn and Trish]

We'll be doing the second dollop for Trish on line in a few days. Can't do it till then as awaiting release of ISA funds. The current account will just about stand the 3 year one.

[Ray Scully]

I am happy with the 3% Santander are paying from 3k up to 20K on my current account, and the money is instantly available if I require it

Ray

[Gill W]

I am happy with the 3% Santander are paying from 3k up to 20K on my current account, and the money is instantly available if I require it

Ray

I've got the Santander account as well. I also like the cash back on utilities

Although I'm retired, I'm still way to young for these bonds - hopefully they'll be around in 10 years time when I'm eligible!

[Mervyn and Trish]

I'm still way to young for these bonds - hopefully they'll be around in 10 years time when I'm eligible!

Show off!

[Gill W]

I'm still way to young for these bonds - hopefully they'll be around in 10 years time when I'm eligible!

Show off!

[Barb44]

I phoned NS&I on Friday morning and had to repeatedly hit the 'redial' key on the phone for about half an hour before I eventually got through. I had initially tried to get on line but it was too slow and I kept getting timed out.

We have both done the 3 year bonds. We thought about having a joint one but then decided to have separate ones so that if for some reason we need the money we will only lose 90 days interest on one of the bonds. Although this would be very unlikely as I think we would draw money from an ISA first.

Barbara x

[JoanneB]

Can anyone who has applied online confirm that they could transfer the money online too? Or is it a matter of sending a cheque afterwards?

[towny44]

Can anyone who has applied online confirm that they could transfer the money online too? Or is it a matter of sending a cheque afterwards?

You can pay online with your debit card.

[JoanneB]

Thanks took a matter of minutes this morning online.

[Delboy]

Our joint low risk investment portfolio bond which we first took out 7 years ago on the advice of our bank, has given us a better return than the granny bonds and had no limit on the amount we could invest.

Providing we don't take an income above a certain % of the original sum invested, It attracts no tax. (Income paid monthly or annually)

Our total income from it to date is equivalent to over 30% of the original sum invested, and it's capital value, which we have access to at any time in part or as a whole (now without penalty) is today worth more than our original sum invested.

Obviously being an investment bond it's value can go up, or down which it did substantially in its first year, as we originally took it out early 2008 just prior to the recession. To withdraw at the time would have incurred further penalties. We decided to ride out the storm not take an income in its first year, thankfully in the 6 years since, it has more than recovered to its present day value.

Reading through the posts would just say before retirement when we were both working, I handled all our day to day finances. Since retirement Mrs Delboy now deals with that side of our affairs, I just keep an eye on our investments, which works fine for us.

[Silver_Shiney]

Delboy, it's not income, it's "return of capital", which is why it's tax-free. The limit is 5% pa of the original sum invested.

If you take the 25% tax-free cash from your pension when buying an annuity and put it in an investment bond, and start the 5% "income", it lowers your tax liability too

[wolfie]

You still pay tax on the other 75%.

If the interest rate is better when either of us turn 65 and are eligible, we may consider them, but until then we are very happy with our diversity of investments.

[poole boy]

must agree with ray 3% on up to 20,000 in my Santander current account sounds a lot better to me especially as I am a still a tax payer