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  • FIRST POST
    • Alter ego
    • By Alter ego 8th Dec 17, 10:50 AM
    • 2,266Posts
    • 2,188Thanks
    Alter ego
    Pensioner bonds
    • #1
    • 8th Dec 17, 10:50 AM
    Pensioner bonds 8th Dec 17 at 10:50 AM
    The NSANDI 3 year 4% pensioner bonds are almost mature now. Anyone got a suggestion where to put mine for max interest? I have done enough regular savers and interest paying current accounts. I am also too old for the stock market.
    Ignore me if you like, it's not the real me anyway.
Page 1
    • Hattie625
    • By Hattie625 8th Dec 17, 11:26 AM
    • 651 Posts
    • 508 Thanks
    Hattie625
    • #2
    • 8th Dec 17, 11:26 AM
    • #2
    • 8th Dec 17, 11:26 AM
    Could it be that NSI will offer something at a preferential rate to those with the 3 year pensioner bond maturing in January? I look after my mother's finances and I got an email for her this week from NSI just saying that her pensioner bond will mature soon and that they will be in touch with "options" nearer the time. here's hoping...
    • jimjames
    • By jimjames 8th Dec 17, 12:15 PM
    • 12,393 Posts
    • 10,981 Thanks
    jimjames
    • #3
    • 8th Dec 17, 12:15 PM
    • #3
    • 8th Dec 17, 12:15 PM
    I am also too old for the stock market.
    Originally posted by Alter ego
    Out of interest, how old is too old for the stock market? If you're tying money up for repeated periods of multiple years that would indicate it's not money you need now
    Remember the saying: if it looks too good to be true it almost certainly is.
    • ColdIron
    • By ColdIron 8th Dec 17, 12:21 PM
    • 3,894 Posts
    • 4,747 Thanks
    ColdIron
    • #4
    • 8th Dec 17, 12:21 PM
    • #4
    • 8th Dec 17, 12:21 PM
    If you liked the 3 year 4% bond, how about the 3 year Guaranteed Growth Bond at 2.20%?
    • Alter ego
    • By Alter ego 8th Dec 17, 8:53 PM
    • 2,266 Posts
    • 2,188 Thanks
    Alter ego
    • #5
    • 8th Dec 17, 8:53 PM
    • #5
    • 8th Dec 17, 8:53 PM
    Out of interest, how old is too old for the stock market? If you're tying money up for repeated periods of multiple years that would indicate it's not money you need now
    Originally posted by jimjames
    It's true that I'm tying it up for 2-3 years at a time. But not in investments that could take a sudden nosedive. Too old is 75+
    Ignore me if you like, it's not the real me anyway.
    • Alter ego
    • By Alter ego 13th Dec 17, 2:01 PM
    • 2,266 Posts
    • 2,188 Thanks
    Alter ego
    • #6
    • 13th Dec 17, 2:01 PM
    • #6
    • 13th Dec 17, 2:01 PM
    The options are on NSAnDI website now. 2.2% for 3 yrs and a few other options for different terms.
    Ignore me if you like, it's not the real me anyway.
    • Pete and Marg
    • By Pete and Marg 29th Dec 17, 5:25 PM
    • 4 Posts
    • 0 Thanks
    Pete and Marg
    • #7
    • 29th Dec 17, 5:25 PM
    • #7
    • 29th Dec 17, 5:25 PM
    We've had the letter from NS&I now. 1.5% for 1 year, 1.7% 2 years, 2.2% 3 years, 2.25% 5 years. 2 and 5 year options only for people renewing a maturing bond, the others are on general sale. Default if you don't tell them what to do is the 3 year one, which seems like a reasonable deal.
    • nilrem
    • By nilrem 30th Dec 17, 12:29 AM
    • 2,147 Posts
    • 1,965 Thanks
    nilrem
    • #8
    • 30th Dec 17, 12:29 AM
    • #8
    • 30th Dec 17, 12:29 AM
    I am just going to leave mine to default to the 3yr bond at 2.20%. Considering that you have the option to cash in if you pay a 90day interest penalty, it does not make sense going for anything less than the 3 yr bond.

    If in 12 months time far better fixed rates become available you can always just pay the penalty and switch and still be better off than if you took the 1 yr bond.
    • Terry98
    • By Terry98 30th Dec 17, 5:35 AM
    • 881 Posts
    • 2,432 Thanks
    Terry98
    • #9
    • 30th Dec 17, 5:35 AM
    • #9
    • 30th Dec 17, 5:35 AM
    I am just going to leave mine to default to the 3yr bond at 2.20%.
    Originally posted by nilrem
    That seems the best solution but what annoys me is the maturing bonds beat inflation and this option looks like it will be at least 50% lower than inflation.
    • nilrem
    • By nilrem 30th Dec 17, 10:54 AM
    • 2,147 Posts
    • 1,965 Thanks
    nilrem
    That seems the best solution but what annoys me is the maturing bonds beat inflation and this option looks like it will be at least 50% lower than inflation.
    Originally posted by Terry98
    Sadly true but don't forget the original investment had a maximum of £10k at a very decent rate whilst the new issue has a max of £1,000,000.
    The 2.20% is near the top in terms of fixed rate savings and the only ones near are all the newer banks which many of us don't wish to use.
    The other advantage of course is being able to withdraw capital if absolutely necessary (with a penalty) which others don't normally allow.

    As you say it could be better but compared to others this does appear to be the best at the moment.
    • capital0ne
    • By capital0ne 30th Dec 17, 2:21 PM
    • 324 Posts
    • 158 Thanks
    capital0ne
    I am also too old for the stock market.
    Originally posted by Alter ego
    Warren Buffett is 87 - someone ought to tell him he should quit now!
    https://en.wikipedia.org/wiki/Warren_Buffett
    You can use investments to reduce inheritance tax by investing in certain AIM shares, maybe woth a bit of your time researching that. Good luck
    • joe134
    • By joe134 10th Feb 18, 10:36 AM
    • 3,074 Posts
    • 400 Thanks
    joe134
    Just had my letter , value £11163?
    At 4% pa should it not be £12000 based on simple interest and not compounded ?
    Last edited by joe134; 10-02-2018 at 11:24 AM.
    • badger09
    • By badger09 10th Feb 18, 12:02 PM
    • 5,896 Posts
    • 5,232 Thanks
    badger09
    Just had my letter , value £11163?
    At 4% pa should it not be £12000 based on simple interest and not compounded ?
    Originally posted by joe134
    I'm making a few assumptions, but here goes

    £10000 invested 1/3/15
    @ 28/2/16 interest £400 due, less 20% tax, net £10320

    28/2/17 £10320 @ 4% £412.80

    28/2/18 10732.80 @ 4% £429.31

    maturity value £11162.11

    Pretty close
    • joe134
    • By joe134 10th Feb 18, 1:39 PM
    • 3,074 Posts
    • 400 Thanks
    joe134
    I'm making a few assumptions, but here goes

    £10000 invested 1/3/15
    @ 28/2/16 interest £400 due, less 20% tax, net £10320

    28/2/17 £10320 @ 4% £412.80

    28/2/18 10732.80 @ 4% £429.31

    maturity value £11162.11

    Pretty close
    Originally posted by badger09
    thanks badger, close enough for me,
    that explains it . I wasn!!!8217;t sure about the tax on this bond.
    Presumed as interest was all paid at maturity, no tax was due until this tax year?
    Ns@i Didn,t do r85 for first year, so forgot about r40 to reclaim it!
    I Didn,t reclaim my 1 year tax bonds either, even though I knew about it!
    Might just fill 2 in.
    Last edited by joe134; 10-02-2018 at 3:01 PM.
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