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NS&I bond maximum investment slashed to just £10000
Dave S
Posted: 13 June 2018 04:59:24(UTC)

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Good morning,

NS&I have slashed the maximum level of deposit that can be made in their fixed income / growth bonds to just £10,000. What are the next best options for the safe investment of £1m and maximum returns whilst keeping it readily available as cash?

Thanks in advance


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mohan on 17/06/2018(UTC)
Posted: 13 June 2018 06:47:09(UTC)

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IMO probably still NS&I but a Direct Saver.

Unless you want to be managing a dozen or so accounts that may keep you within FSCS per holding.
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Dave S on 14/06/2018(UTC), mohan on 17/06/2018(UTC)
Fell Walker
Posted: 13 June 2018 07:59:08(UTC)

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Investec maybe worth looking at.

You could also look at RCI (Renault) but they are BBB credit rating.
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Dave S on 14/06/2018(UTC)
mark senior
Posted: 13 June 2018 19:14:48(UTC)

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Short term Gilts?
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Dave S on 14/06/2018(UTC)
Dave S
Posted: 14 June 2018 08:46:38(UTC)

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mark senior;63846 wrote:
Short term Gilts?

How would you go about purchasing these, directly or through a fund and could you provide links to examples? I don't have any experience with gilts but I have seen some funds that focus on this type of asset.


Tim D
Posted: 14 June 2018 09:33:57(UTC)

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For direct bond holdings, HL seem to offer online dealing (for non-exotic ones anyway); most other platforms seem to need a phone call. If you're holding these outside a tax wrapper make sure you understand how they're taxed... these days buying gilts can easily set you up to convert a capital loss you can't use for CGT into taxed interest income.

For collectives, the IGLS ETF seems to be a popular choice (basket of gilts of 0-5 years duration; effective duration currently 2.2, 0.2% OCF). For even shorter there's ERNS (0-1 years; actually that one's not gilts, but it is almost half AAA stuff). Yields on anything at this level of credit quality are absolutely pitiful of course (NS&I much better, hence its popularity)... I can't imagine using an active fund in this area; the fees would surely eat all the returns and more.
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Dave S on 14/06/2018(UTC), mohan on 17/06/2018(UTC)
Posted: 17 June 2018 08:23:36(UTC)

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If you have a Bond that is due to mature, you can renew it online or by phone if you are registered for this service; you can also renew by post. The minimum amount you can renew is £500. There is no maximum limit when renewing a maturing Bond.
NS&I site
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