National Savings & Investments - How they work

National Savings and Investments


Guaranteed Growth Bonds Guaranteed Growth Bonds How they work Are they right for me? Interest rates Calculator Terms and conditions Invest now What happens at maturity?	Our range / Guaranteed Growth Bonds / How they work With our Guaranteed Growth Bonds, you can be sure that the return on your investment is guaranteed. The Bonds are lump sum investments that earn fixed rates of interest over a set period of time (called a ‘term’). Your interest will be added to your Bond each year to build up the value of your investment. Guaranteed Growth Bonds are designed to be held for their full term. You can have access to your investment before the end of the term, but there will be a penalty equal to 90 days’ interest on the amount you cash in. 100% security Interest Choice of investment terms What is an Issue? Who can invest? Investing in trust What about tax? Investment limits Cheque and debit card clearance What if I need my money before the end of the term? What happens at the end of the term? About the terms and conditions Protecting your personal information Our commitment to good service 100% security National Savings and Investments is backed by HM Treasury, so any money you invest in our Guaranteed Growth Bonds is 100% secure. Back to top Interest The interest rate for each Issue of each investment term is guaranteed. We calculate your interest daily starting from the day we receive your application and payment, subject to your application being accepted. So you don’t have to wait for your payment to clear before your money starts to earn interest. Back to top Choice of investment terms We usually offer Guaranteed Growth Bonds with a choice of investment terms – currently there are 1-year, 3-year and 5-year terms on sale. You can choose which term suits you best, or you can invest in more than one. Back to top What is an Issue? Each term of Guaranteed Growth Bonds is sold in Issues. We bring out a new Issue whenever the fixed interest rates we are offering change. This doesn’t affect the interest rates on any Guaranteed Growth Bonds you already have – they remain the same. Back to top Who can invest? Anyone aged 16 or over. You can invest by yourself or jointly with one other person. For joint investments, we will send the Bond and any correspondence to the first investor named on the application. Back to top Investing in trust If you want to invest in trust for someone else then you’ll need to apply by post using a special form – see Other ways to apply. Back to top What about tax? The interest from your Guaranteed Growth Bond is taxable and the tax is deducted at source (known as ‘paid net’). This means that we take off tax (20% at time of printing) before we credit your interest. If your total taxable income, including the interest on your Guaranteed Growth Bond, means that you pay tax at the basic rate you will have no more tax to pay on the interest. If you pay tax at the higher rate you must declare the interest to HM Revenue & Customs. Each tax year we will send you a statement showing the interest earned on your Bond and the amount of tax taken off. Non-taxpayers and starting rate taxpayers can claim the excess back from HM Revenue & Customs. For joint investments where one investor is a non-taxpayer, their share of the tax can be claimed back. Claims should be made to HM Revenue & Customs. We cannot advise you on how much tax you will need to pay. To find out more, visit the HM Revenue & Customs website at www.hmrc.gov.uk Because tax is deducted at source for all investors in Guaranteed Growth Bonds, one of our investments that pays interest gross may be more suitable for non-taxpayers. And if you are a higher rate taxpayer, one of our tax-free investments may suit you better. See Our range. Back to top Investment limits You can invest any amount from £500 to £1 million, either individually or jointly with one other person. This limit covers both Guaranteed Growth Bonds and Guaranteed Income Bonds (and previous Issues of Fixed Rate Savings Bonds). For example, if you have invested the maximum in Guaranteed Growth Bonds, you cannot invest in Guaranteed Income Bonds. Back to top Cheque and debit card clearance If you buy your Bond by cheque or debit card, your payment will be cleared on the 7th working day (ie excluding weekends and English bank holidays). Bonds can only be cashed in after your payment has cleared. For example, if we receive your cheque or debit card details on a Monday, your payment will be cleared on the Tuesday of the following week. Allow one additional day for each English bank holiday. Back to top What if I need my money before the end of the term? To get the full return from your Guaranteed Growth Bonds, you will need to keep your money invested for the whole of your chosen term. You can cash in your Bond at the end of its term with no notice and no penalty. If you do need access to your money you can cash in all or part of your Bond early, but we will deduct a penalty equivalent to 90 days’ interest on the amount you cash in. If you’re cashing in just part of your Bond you must keep at least £500 invested. To cash in, contact us and we’ll send you a form. To cash in a Bond held jointly, both investors need to sign. Back to top What happens at the end of the term? We’ll write to you shortly before your Bond reaches the end of its term to let you know your options. You can then choose to: continue holding your Bond for another term of the same length reinvest in a Guaranteed Growth Bond for a different term reinvest in another NS&I investment cash in your Bond If you don’t reply to us by the end of the term, your Bond will start earning interest at the new guaranteed rate on offer for a further term of the same length. Please note that if you cash in your Bond after the end of a term, the normal 90-day penalty will apply. If NS&I Guaranteed Growth Bonds are no longer on sale when your Bond matures, we will write to offer you an alternative. Back to top About the terms and conditions Please read the terms and conditions before you invest. If we make any changes to the terms and conditions after you invest, we will let you know. If any change is to your disadvantage, we will tell you personally at least 30 days before the change. In this case you can switch to another NS&I product or cash in your Bond, without notice or penalty, within 60 days of us telling you. For any other changes we will let customers know by updating our website. Back to top Protecting your personal information When you become a customer of ours, we will treat all the personal information we hold about you as private and confidential. Click here for details on our privacy policy. Back to top Our commitment to good service As part of our commitment to providing you with a high standard of service, we subscribe to the Banking Code. If we make a mistake we’ll aim to put things right quickly and without fuss. And if you have a complaint, we have a procedure designed to resolve it fairly. We are also covered by the Financial Ombudsman Service. Click here to find out more about the Banking Code or our complaints procedure. Back to top Home Print Email to a friend		Search Invest now! Click here to invest now Benefits Guaranteed returns Choice of terms Investor’s guide Our range Our interest rates Need help to decide? Tax and savings Security Privacy policy Online security Backed by HM Treasury


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