Growth Bonds and PFICS

I am double checking my understanding of PFICS due to past experiences.  I am a 59 year old USC living in the UK and retired.  Am I correct in thinking that Guaranteed Growth Bonds such as those at NSI are NOT subject to PFIC taxes?  Bonds fail the PFIC tests as the passive growth is not derived from equities (i.e. mutual fund).  For bonds,  passive income is from debt .  Therefore, PFIC is not applicable.   Correct? Thanks.

I believe you are correct. PFICs are usually pooled investments similar to mutual funds. Individual stocks and bonds are okay.

I just report any NS&I income as interest, plain a simple. Premium Bonds, cash ISA, all interest. Bonds are regarded as securities, you’re effectively loaning the U.K government money on which they pay interest to you, (6% plus at the moment).

I just report any NS&I income as interest, plain a simple. Premium Bonds, cash ISA, all interest. Bonds are regarded as securities, you’re effectively loaning the U.K government money on which they pay interest to you, (6% plus at the moment).

This is exactly what I do.  I do report the balances on the annual FBAR.

IRS Publication 1212 may assist: https://www.irs.gov/pub/irs-pdf/p1212.pdf

Thanks to all for their replies.  I have read through 1212 along with a close reread of Schedule B form 1040 instructions.  I agree with what was mentioned in the replies…that a sensible approach appears to be to report the bond gain as simple interest in 1040 Sch B perhaps giving separate line items for each NSI ISA pot, NSI bonds, etc.  Then reporting them individually on FBAR and 8938.

Definitely FinFEN 114 and 8938 if you meet the thresholds. All NS&I income, (DISA, DS and so on) will form one line on your return, (the one payer). On the informational returns, you'd list each account separately.