Pensioner Bonds Guide

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  • frodob
    frodob Posts: 33 Forumite
    have some premium bonds (for which registered with NS&I) which am considering moving into pensioner bonds - any chance of this going through directly (probably via phone) or must I wait repayment first? I am assuming will not sell out too soon and would certainly intend to suggest that sale is dependent on an allocation. Any views?


    Separately having considered this am I right that for 10K would receive after 3 years 320 which could then subsequently increase to 400 by applying to HMRC if eligible.
  • Brand
    Brand Posts: 79 Forumite
    Chrysalis wrote: »
    The obvious question missing from the FAQ?

    Why is it for 65+ only, and why is the government spending money to subsidise the cash rich when it supposedly in austerity.?

    Seems a vote buy.

    Yes it is a giveaway and a vote buy, and surprised me too.
    The larger ongoing subsidy, though, is to people on mortgages and in debt (and to the banks) via low interest rate, which is a penalty upon all savers. It is really trying to offset the effect on older savers, whom Osborne fears will turn to UKIP
  • Primrose
    Primrose Posts: 10,620 Forumite
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    edited 18 January 2015 at 7:00PM
    I am registered to manage my NSI products online and my premium bonds are shown but following a purchase of some one and three year pensioner bonds on the 16th I had expected to see them showing under the Pending Transaction section of site but nothing is showing.

    Should I be panicking about this at this early stage or will the bonds only appear on the site when the paperwork has been signed and returned?
    I realise we are all in the dark on this new product but I feel very uneasy when sums of money have been paid out and I have no audit trail for them. The money has gone from my bank account.
  • 2010
    2010 Posts: 5,343 Forumite
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    Primrose wrote: »
    I am registered to manage my NSI products online and my premium bonds are shown but following a purchase of some one and three year pensioner bonds on the 16th I had expected to see them showing under the Pending Transaction section of site but nothing is showing.

    I`m in exactly the same position but waiting for tomorrow as I expect the "backroom staff" only do Mon to Fri, unlike sales who are 24/7.

    The money has gone from my current account but shows as transfer to NS&I.
    They still have to send a welcome pack and a form to sign and return, so I don`t think you should be too concerned yet.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    edited 18 January 2015 at 7:23PM
    frodob wrote: »
    have some premium bonds (for which registered with NS&I) which am considering moving into pensioner bonds - any chance of this going through directly (probably via phone) or must I wait repayment first? I am assuming will not sell out too soon and would certainly intend to suggest that sale is dependent on an allocation. Any views?
    you need to sell your premium bonds first. Then when the money is in your bank, you can buy pensioner bonds (if still available)

    frodob wrote: »
    Separately having considered this am I right that for 10K would receive after 3 years 320 which could then subsequently increase to 400 by applying to HMRC if eligible.
    the 3 year bond has a 4% AER (annual equivalent) rate so £320ish will be added to your bond each year for 3 years. In years 2 and 3, you will get interest on your money plus interest on the interest, so it's slightly more than 3 x £320 (£990ish in total).

    You can reclaim £80ish each year for 3 years if you are not a tax payer (it's also slightly more than 3 x £80, due to the interest compounding - £80 in Y1, £82.56 in Y2 and £85.20 in Y3, a total of £247.76 if my numbers are right). You would do this by means of an R40 form.
  • frodob
    frodob Posts: 33 Forumite
    Thanks Archi - just what I needed. Will now hope that getting cash out of premium bonds turns out to be easier than buying the new bonds
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    From the NS&I website:
    When you cash in online or by phone, we’ll send your payment within three working days. When you do this by post, we will send your payment within eight working days.

    So obviously use online or phone. The pensioner bonds might not hang around for another 8 days.
  • ocallkso
    ocallkso Posts: 1 Newbie
    My elderly parents are applying for the nsandi investor bonds for 65+ and are applying by post but the application form isn't very helpful. Does anyone know whether it is possible to transfer the money they have in nsandi's premium bonds to the new investor bonds for 65+? I can't seem to find the answer anywhere and have given up tryin the 'help' line!

    Thanks for any advice on this.
  • nilrem_2
    nilrem_2 Posts: 2,188 Forumite
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    ocallkso wrote: »
    My elderly parents are applying for the nsandi investor bonds for 65+ and are applying by post but the application form isn't very helpful. Does anyone know whether it is possible to transfer the money they have in nsandi's premium bonds to the new investor bonds for 65+? I can't seem to find the answer anywhere and have given up tryin the 'help' line!

    Thanks for any advice on this.

    As far as I am aware you cannot transfer directly, you will have to cash in the premium bonds first then invest in the new bonds.
  • Primrose
    Primrose Posts: 10,620 Forumite
    Name Dropper First Post First Anniversary I've been Money Tipped!
    ocallkso wrote: »
    My elderly parents are applying for the nsandi investor bonds for 65+ and are applying by post but the application form isn't very helpful. Does anyone know whether it is possible to transfer the money they have in nsandi's premium bonds to the new investor bonds for 65+? I can't seem to find the answer anywhere and have given up tryin the 'help' line!

    Thanks for any advice on this.

    I think the answer is that your parents will first have to cash in their premium bonds. Unfortunately there is no mechanism in the NS&I proceess which will allow you to convert one kind of product into a different one. You have to go into cash first so if thisnis what they want to do, withdraw the cash from premium bonds fairly soon as it mayntake a while for the money to come through.
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