NS&I, a word of caution about National Savings and Investments (NSandI)

Eager_Saver

Morning all,

Just a word of caution to anyone thinking of taking a NS&I bond (Guaranteed Growth Bond in my case) : make sure you do not miss the maturity date otherwise they will sting you with penalty fees for cashing it in after that date.

They sent me the reminder letter at the very end of last year, for a maturity 1st week of Jan. Being the holiday season I was away and only came back after the maturity date. Contacted them asap but they still reduced the interest earned by over 25% (3 months).

After a complaint they tell me there's nothing they can do, and I should have let them know before the maturity date

I guess I may be responsible - a little bit - but I still think it's very poor customer service from NSandI imo.

Baldur

You failed to read the Terms & Conditions and blame NS&I for that failure?

Cashing in

23. Bonds bought by cheque or debit card can only be cashed in after your payment has cleared. The time taken for payments to clear is detailed in the Guaranteed Growth Bonds brochure. You can cash in a Bond at any time in accordance with paragraphs 24, 25 and 32. Bonds can be cashed in by completing the relevant form (available from NS&I) and sending it to NS&I with your certificate of investment. To cash in a Bond held jointly, all investors need to sign the form.

Penalty

24. Except where paragraph 25 applies, a penalty equivalent to 90 days interest on the sum requested, at the rate your Bond is earning on the day before the day you cash in, will be deducted from the amount to be cashed in. This penalty also applies to Bonds held for less than 90 days.

25. No penalty will be charged:
(a) if you cash in at the end of the term or at the end of any subsequent term (see paragraph 35) and your instructions are received by the end of that term;
(b) where an instruction to cash in is made after the death of a sole, or last surviving, registered holder;
(c) where the Bond is registered as held in trust and the instruction to cash in is made after the death of a sole, or last surviving, beneficiary.

Eager_Saver

I only got charged because they automatically rolled it in another fixed bond, which I wasn't aware of - didn't read - when I signed up.

I'm only complaining because they gave me less than 10 days around the Christmas period to act ... but I wasn't there to see I needed to act.

Jonbvn

Eager_Saver wrote: »

I only got charged because they automatically rolled it in another fixed bond, which I wasn't aware of - didn't read - when I signed up.

Sorry, but this is completely your own fault. You should always read T&C's and plan accordingly.

jack_spratt_2

I believe the bond was rolled over for a further year at the rate of 3.95% which at the time was a very good rate for a 1 year bond .
You had the option to take no action and the bond would roll-over or ask for the funds to be paid to you .
To many people the roll-over option worked very well and maybe the fault was more that you did not realize that the bond matured while you were on holiday which over the Christmas period with probably so much happening is understandable

Baldur

Eager_Saver wrote: »

I only got charged because they automatically rolled it in another fixed bond, which I wasn't aware of - didn't read - when I signed up.

I'm only complaining because they gave me less than 10 days around the Christmas period to act ... but I wasn't there to see I needed to act.

Unfortunately, you've had an expensive lesson about reading the Ts&Cs of financial products and planning for the maturity of accounts such as this one.

I have been £3,000+ miles from the UK when similar products of mine have matured but a diary note or 'To Do' note in my laptop's calendar application has always ensured that these critical dates have not been missed.

Etccarmageddon

I think you're being harsh - something like this shouldn't be buried in the T and C

Baldur

Etccarmageddon wrote: »

I think you're being harsh - something like this shouldn't be buried in the T and C

Life is harsh, especially when dealing with financial institutions.

lisyloo

Etccarmageddon wrote: »

I think you're being harsh - something like this shouldn't be buried in the T and C

They can't put everything in a headline.
It's simply not possible.

Eager_Saver

ok, ok, it's my own fault then, but still think the rollover should be in an "easy access" kind of deal not 1 year fixed.

baldur wrote:

I have been £3,000+ miles from the UK

what's that then

It was my first bond and you're right, the lesson has been learnt, just wanted to vent.

Baldur

Eager_Saver wrote: »

what's that then

Pudgy fingers.... hit Shift '3' and '3'