which and why

[mutantpoodle]

I keep reading advice to put money into N S and I 'direct saver' earning (currently) 1% with easy access

but why?............N S and I have 'income bonds' paying 1.16% with easy instand access

what am I missing??????//

[Maylix]

The Bonds get interest credited annually, need a minimum balance of £500, and withdrawals have to be a minimum of £500. Apart from that, no difference....

[kiloran]

The Bonds get interest credited annually

Not true.... NS Income Bonds pay interest monthly (1.16% AER), which is transferred to your nominated bank account each month
https://www.nsandi.com/income-bonds

--kiloran

[PinkDalek]

I keep reading advice to put money into N S and I 'direct saver' earning (currently) 1% with easy access

but why?............N S and I have 'income bonds' paying 1.16% with easy instand access ...

There are other slight differences, compare and contrast:

https://www.nsandi.com/direct-saver

https://www.nsandi.com/income-bonds

Such as different minimums and maximums and methods of access etc.

[Loup321]

Direct Saver - minimum deposit / withdrawal of £1. Interest credited annually to the account. Maximum £2million. 1% APR
Income Bonds - minimum deposit / withdrawal of £500. Interest credited monthly to linked bank account. Maximum £1million. 1.15 APR/1.16% AER

You can only withdraw from either to a specific nominated bank account, although I opened the Direct Saver first, and can nominate that as the account for the interest and withdrawals from the Income Bonds.

There are instructions for how to set up a Standing Order from your bank into either account. There are different sort code / account number combinations for the types of accounts, and you use your account number as the reference. You can also make deposits by debit card (I used this for an amount that I think is larger than the daily transfer limit out of my current account, but I'm not certain of the daily limit).

So the Income Bonds doesn't allow "growth" as the interest is sent elsewhere, and is likely to be too low to put it directly back in. I have just opened both accounts, and it took a day for each account, opened online, so take with a pinch of salt those people who said it took 6 weeks. Maybe they were opening by phone or post. I will have the bulk of the money in the Income Bonds, and less than £500 in the Direct Saver. I use the account(s) for those annual (or sporadic) expenses that I want to pay for monthly, such as Insurance, Christmas, clothes, dancing lessons, etc. and a withdrawal is necessary every month, but usually for less than £500.

[mutantpoodle]

Hi Loup
well it was me who said it took 6 weeks to open...and it did....so please dont sugest pinches of salt,,, its personal and specific experience

after 6 weeks despite having held index linked bonds for 20 years I was asked for the 3rd time THIRD TIME for a witnessed signature

yes I then received an NSn I number....but as yet havent tried to withdraw any money so in fact do not know if heving a number overrides the request for signature

what it DOES PROVE is that they do not work together and right hand clearly has no idea of left hand

[Loup321]

Hi Loup
well it was me who said it took 6 weeks to open...and it did....so please dont sugest pinches of salt,,, its personal and specific experience

Sorry, when you said it, I read it (not that you said it) that one could assume 6 weeks was normal, when my experience was totally different. I didn't mean to cause any offence. You're right, I should have said it could vary. As a new customer, I would have expected longer wait times than I got, and as an existing customer, you probably have a right to expect a faster service. And apologies for not apologising sooner - I don't read the forums much over the weekends!