National savings bonds rates – The right choice for you?

When it comes to new customers, we often Premium Bonds, but not very often to many other products of domestic savings bonds rates and investments (NS & I) are offered.

Some NS & I returns are currently looking very interesting, so it may be worth looking at the two plants, premium bonds and saving certificates.

The purpose for NS & I offers savings accounts and bonds to raise funds for the government. The various programs range from tax free for taxpayers, and, of course, are safe havens for their money because they are backed by the British government.

About a quarter of all the money is invested in NS & I Premium Bonds held in the. Of course, strictly speaking, they are not those that rely on investments do not earn interest, but actually a lottery in some form of a monthly prize draw.

Of course, this means that you are lucky or not. The possibility of winning is equal to a tax-free rate of 3.8%.

But you’re just the risk of attractions.

For a higher rate savings bonds rates taxpayer this income tax to 40%, it is an equivalent rate of 6.33% gross.

Now let’s look at savings bonds.

One problem for taxpayers is taxed at a much higher share of their profits by 40%. One of the main advantages of savings bonds is that they are tax free.

The fixed-rate certificate, savings bonds rates such as the option of two years, paying 3.95%. This is savings bonds rates, 6.58% for a higher fee Payer and 4.94% for basic rate taxpayers. There is also an option of 5 years, which currently pays 3.85%.

with a view of index certificates, the picture is even more attractive. Due to a rise in inflation, which has evaluated for this purpose back by 4.5%, the 3-year bond 1.35% on it. This translates into a net return of 5.85% per annum and a GDP equivalent to a higher rate taxpayer 9.75%! The rate savings bonds rates is also the same for the product warranty of 5 years.

You can invest from £ 100 to £ 15,000 for each problem, regardless of the reinvestment of the certificates of maturity.

You can learn savings bonds rates more about NS & I

Financial Advice The bottom line:

Be sure to consider all tariffs and products out there, especially if you pay more taxes. NS & I may be right for you, especially when you are at a stage in your life when you do not need to take any risk to the capital.

Now might be a good time for all cash and savings bonds rates are based review Investment.

Ray Prince is an Independent Financial Planner with Rutherford Wilkinson plc, the UK and helps dentists and medical residents get the best savings bonds rates for mortgages, protection and investment, and helps them achieve their financial goals. Just visit to get your free guide to screening.

Rutherford Wilkinson plc savings bonds rates is authorized and regulated by the Financial Services Authority.

By: Ray Prince
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