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Topic: NS&I allow US Citizens to invest with them  (Read 361 times)

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NS&I allow US Citizens to invest with them
« on: September 07, 2019, 09:57:54 AM »
When we first moved back in 2016 and bought a house the following year I was looking for safe places to keep money and NS&I had some good offerings above the usual savings rates. At the time US Citizens, even resident in the UK, were not allowed as it was considered a waste of taxpayers money to become FATCA compliant. I checked with them this week and they now do allow USC's to open accounts.  I tested it by opening an online account and I got prompted and was able to enter the USA as a country plus my tax id (SSN).

Of course they don't have the good rates they were offering a couple of years ago with their Growth Bonds but the current government is upping spending and I expect a new government would maintain or increase the spending so perhaps more borrowing will prompt NS&I to offer some better rates in the near future.
Dual USC/UKC living in the UK since May 2016


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Re: NS&I allow US Citizens to invest with them
« Reply #1 on: September 07, 2019, 10:04:50 AM »
When we first moved back in 2016 and bought a house the following year I was looking for safe places to keep money and NS&I had some good offerings above the usual savings rates. At the time US Citizens, even resident in the UK, were not allowed as it was considered a waste of taxpayers money to become FATCA compliant. I checked with them this week and they now do allow USC's to open accounts.  I tested it by opening an online account and I got prompted and was able to enter the USA as a country plus my tax id (SSN).

Of course they don't have the good rates they were offering a couple of years ago with their Growth Bonds but the current government is upping spending and I expect a new government would maintain or increase the spending so perhaps more borrowing will prompt NS&I to offer some better rates in the near future.

I made an investment with NS&I four months ago.   I was already maxed on my cash ISA contributions, and I am not getting very much interest on other savings, so I put the rest in premium bonds.  :P  My husband then did the same.  He has won £25 every month.  I've won nothing.  But, between us, it's still better than the lack of interest at Lloyds, etc.

9/1/2013 - "fiancée" (marriage) visa issued
4/6/2013 - married (certificate issued same-day)
5/6/2013 - FLR(M)#1 in person -- approved!
8/1/2016 - FLR(M)#2 by post -- approved!
8/5/2018 - ILR in person -- approved!
22/11/2018 - Citizenship (online, with NDRS+JCAP) -- approved!
14/12/2018 - I became a British citizen.  :)


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Re: NS&I allow US Citizens to invest with them
« Reply #2 on: September 07, 2019, 10:14:03 AM »
I made an investment with NS&I four months ago.   I was already maxed on my cash ISA contributions, and I am not getting very much interest on other savings, so I put the rest in premium bonds.  :P  My husband then did the same.  He has won £25 every month.  I've won nothing.  But, between us, it's still better than the lack of interest at Lloyds, etc.

I do use Premium Bonds as they were not subject to the USC restriction. Last month I won $550 (£500 + 2 x £25). This year the effective interest rate for me is already 2.07% as I also have several other £25 prizes. Last year I won some prizes for an overall rate of 1.7%. Beginners luck I'm sure.

There was a good article on Premium Bonds in Which? last month. I use them as our "rainy day fund" as it is very easy to put money in and out, and is backed by the Treasury.

https://www.which.co.uk/news/2019/08/premium-bond-winners-august-2019-should-you-buy-bonds-for-children/

Quote
The NS&I estimates that a person with average luck could earn a return of 1.4% over a year. There’s no guarantee of this, however: while a lucky few will win much more, many will win less or nothing at all. If you hold £10,000 or more in bonds, your probability of winning at least one prize in a 12-month period is upwards of 99.99% – although the prize could be as little as £25, which would equate to a return of just 0.25%.

Dual USC/UKC living in the UK since May 2016


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Re: NS&I allow US Citizens to invest with them
« Reply #3 on: September 07, 2019, 12:17:09 PM »
I've got the majority of my savings in a cash ISA which is on a fairly good interest rate, so I want to leave that where it is.  Meanwhile, my piddly premium bond 'investment' hasn't performed at all (my husband's larger premium bond investment has outperformed my ISA).  Plus, when/if my premium bonds pay out, I'll owe a sizable chunk of my winnings to IRS, whereas my husband's winnings are tax free.  I'm considering gifting my non-ISA money to my husband so he can invest it and reap the rewards freely.  The only reason I haven't done it yet is because I like knowing I have a chance of winning.  I'd worry that I have a gambling problem, except premium bonds aren't gambling.  :P

I'm always on the lookout for savings rates that are protected.  (I'm extremely risk-averse!).  I'll keep an eye on NS&I's other offerings.  I'm checking their site to see if I've won every month, anyway.  :)
9/1/2013 - "fiancée" (marriage) visa issued
4/6/2013 - married (certificate issued same-day)
5/6/2013 - FLR(M)#1 in person -- approved!
8/1/2016 - FLR(M)#2 by post -- approved!
8/5/2018 - ILR in person -- approved!
22/11/2018 - Citizenship (online, with NDRS+JCAP) -- approved!
14/12/2018 - I became a British citizen.  :)


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Re: NS&I allow US Citizens to invest with them
« Reply #4 on: September 07, 2019, 01:32:39 PM »
I'm always on the lookout for savings rates that are protected.  (I'm extremely risk-averse!).  I'll keep an eye on NS&I's other offerings.  I'm checking their site to see if I've won every month, anyway.  :)

Exactly what I do, which is why I started this thread, to let folks know that NS&I savings options is now an option outside of Premium Bonds.
Dual USC/UKC living in the UK since May 2016


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Re: NS&I allow US Citizens to invest with them
« Reply #5 on: September 07, 2019, 05:24:30 PM »
Martin Lewis has a really good article on Premium Bonds. https://www.moneysavingexpert.com/savings/premium-bonds/

I didn't have any but have seen you guys talk about them before and I thought to myself, if jfkimberly likes the look of them, that's good enough for me so I bought some! I won £25 this month, only the second month I've been eligible so really happy about that! I feel I have you to thank jfkimberly!   [smiley=2thumbsup.gif] :)
March 28th 2013-Moved to UK, husband on spouse visa.Oct 20th 2015-Applied by mail for FLR(M).Feb 1st 2016 FLR(M).March 7th 2018 ILR. YAY! March 21st NCS&JCAP appointment.


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Re: NS&I allow US Citizens to invest with them
« Reply #6 on: September 07, 2019, 09:32:33 PM »
Martin Lewis has a really good article on Premium Bonds. https://www.moneysavingexpert.com/savings/premium-bonds/

I didn't have any but have seen you guys talk about them before and I thought to myself, if jfkimberly likes the look of them, that's good enough for me so I bought some! I won £25 this month, only the second month I've been eligible so really happy about that! I feel I have you to thank jfkimberly!   [smiley=2thumbsup.gif] :)

Aww, yay!  I'm glad it's paid off for you so quickly!  With the amount I've invested, I'm likely to win within a year... my husband wins every month.
9/1/2013 - "fiancée" (marriage) visa issued
4/6/2013 - married (certificate issued same-day)
5/6/2013 - FLR(M)#1 in person -- approved!
8/1/2016 - FLR(M)#2 by post -- approved!
8/5/2018 - ILR in person -- approved!
22/11/2018 - Citizenship (online, with NDRS+JCAP) -- approved!
14/12/2018 - I became a British citizen.  :)


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Re: NS&I allow US Citizens to invest with them
« Reply #7 on: September 11, 2019, 05:03:50 PM »
Ok, I am totally not following this.

You buy bonds, which is basically you invest some money that someone else uses.

Periodically there is some kind of a lottery where if your bond's number comes up, you win a prize. But you are by no means absolutely going to win.

When you cash-out more than you paid in, you owe (if you are a US citizen) taxes to the USA, right?

So....it's like a lottery that doesn't make you any income unless you win a "prize"?
« Last Edit: September 11, 2019, 05:05:55 PM by Nan D. »


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Re: NS&I allow US Citizens to invest with them
« Reply #8 on: September 11, 2019, 05:13:08 PM »
Ok, I am totally not following this.

You buy bonds, which is basically you invest some money that someone else uses.

Periodically there is some kind of a lottery where if your bond's number comes up, you win a prize. But you are by no means absolutely going to win.

When you cash-out more than you paid in, you owe (if you are a US citizen) taxes to the USA, right?

So....it's like a lottery that doesn't make you any income unless you win a "prize"?

Martin Lewis explains it well here. https://www.moneysavingexpert.com/savings/premium-bonds/

It's like playing the lottery except you get all of your money back when you want it.  :)

The draws are monthly and any winnings are tax free in the UK but not from a US standpoint.
March 28th 2013-Moved to UK, husband on spouse visa.Oct 20th 2015-Applied by mail for FLR(M).Feb 1st 2016 FLR(M).March 7th 2018 ILR. YAY! March 21st NCS&JCAP appointment.


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Re: NS&I allow US Citizens to invest with them
« Reply #9 on: September 11, 2019, 06:33:33 PM »
Martin Lewis explains it well here. https://www.moneysavingexpert.com/savings/premium-bonds/

It's like playing the lottery except you get all of your money back when you want it.  :)

The draws are monthly and any winnings are tax free in the UK but not from a US standpoint.

Exactly. The winnings are paid automatically  into our bank account, the bonds themselves never lose value and can be redeemed at any time.

I started this thread not to promote Premium Bonds but to point out that the other, standard, savings vehicles from NS&I are now available to USCs. When we first got back in 2016/17 they had some of the best rates out there but US citizens were not allowed to invest.

I had another £25 win this month,  £750 year to date.
Dual USC/UKC living in the UK since May 2016


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Re: NS&I allow US Citizens to invest with them
« Reply #10 on: September 11, 2019, 06:45:28 PM »
Ah, that's interesting. My savings account is earning me diddly, so perhaps I can spare a bit for one of the NS&I then!


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Re: NS&I allow US Citizens to invest with them
« Reply #11 on: September 19, 2019, 11:23:14 AM »
From a US tax perspective premium bonds are FBAR & 8938 reportable. Prizes are taxable.  From a UK tax perspective prizes are tax-free, but the capital forms part of an estate at death, so may still be charged to IHT.


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