Pensioner Bonds Guide

peterbadger

Beware if you forget any of your memorable information, which you need to change your password. You firstly have to get through on the phone, which I found impossible for several days - I even tried at 3.30am but still couldn't get through. Then when you do get through they have to arrange to send you a new temporary password in the post.
I don't understand why this is considered to be more secure, given that all it takes is for the postman to leave your envelope sticking out of your letterbox for someone to steal your information. They also send you your NSI number multiple times in the post even though you haven't asked for it. I had it sent three times, once for the 2.8% bond , once for the 4% bond and again about the time of my new temporary password request. That's three chances for it to be stolen.
I thought of suggesting to NSI that they send part of the temporary password by email and give the other part over the phone but then I don't have time to phone them. I wonder why no-one there has thought of a better method of giving a temporary password.

Egalitarian

alanq wrote: »

I agree this is confusing but I believe the confusing / misleading information is not limited to NS&I. Although fixed rate bonds that offer the option of early withdrawal are rarer these days I believe that the same issue applies to many/most. i.e. the penalty is "equivalent to x days' gross interest" rather than "the loss of x day's interest". Not all make this clear.

Unlike 65+ Bonds, ISAs and NS&I Savings certificates are tax-free so at least they don't suffer from this issue.

Update: I have just found an example from RBS which does make things explicit 'Charge for closure after your Bond is opened and before the Maturity Date (the “Early Closure Charge”) is equivalent to:90 days’ gross interest'.

I think you're right, but why is this so prevalent? The financial institution doesn't gain from this only the Treasury - back into conspiracy territory.

The answer may be that no one is aware of the ambiguity. The obvious interpretation of the penalty is the one MSE make. Unless you cash in a bond early, you won't know that the penalty is calculated differently, in a way that maximises your loss to the benefit of the government - and then only if you check the penalty.

It's disappointing that MSE don't want to take this up, particularly because they are giving wrong information to savers as a result of NS&I's failure to comply with financial codes of practice.

The RBS example you give is one of the better ones, but still not above criticism. It defines the penalty as '90 days gross interest' but then goes on to say that this will be deducted from interest earned. Is that interest earned before it is added to your account or after it has been taxed and added to your account? It's not clear, but the latter will maximise your loss, so that's the way it will be done.

Savers are being mislead and this should be investigated. It's not difficult to get it right - why isn't it being done?

witewabbitt

I'm sure this is interesting but it doesn't address my question about living in the Isle of Man and claiming tax back. Please respond.

mike88

witewabbitt wrote: »

I'm sure this is interesting but it doesn't address my question about living in the Isle of Man and claiming tax back. Please respond.

Telephoning NS&I would be a better option than hoping for definitive advice from this board.

kidmugsy

libra10 wrote: »

For the past several years, interest rates have declined to almost zero percent, meaning that those who have prudently saved are paying for those who have been less responsible!

Why do people resent those who have taken responsibility for paying their own way through life, and begrudge them being given any concessions?

Ever since Mr Brown's time our governments have been subsidising borrowers - above all youngish people with mortgages - at the expense of savers, principally codgers. Now there's a brief and limited reversal of the direction of subsidy, and an almighty wailing goes up about the wealthy old pensioners. Just how stupid and ignorant are these people?

nilrem_2

Please be aware that this thread is about all aspects of the over 65 bonds, people who have posted since your question were addressing other issues not your particular question.

If anyone who reads your question knows the answer I am sure they would offer advice but TBH mike88's advice to phone NS&I is probably your best course of action!

Bilbobaggins_2

I recently invested in a 3 year pensioner bond as the interest rate on my Isa was next to nothing, nowhere can I find any information about if I can add to this bond, I would appreciate any advice on this :undecided

2010

Bilbobaggins wrote: »

I recently invested in a 3 year pensioner bond as the interest rate on my Isa was next to nothing, nowhere can I find any information about if I can add to this bond, I would appreciate any advice on this :undecided

I don`t know off hand, but assume as the bonds are only on sale until mid May, that`s how long you`ve got to add to them.
Up to the £10k limit per person per bond.

colsten

Bilbobaggins wrote: »

I recently invested in a 3 year pensioner bond as the interest rate on my Isa was next to nothing, nowhere can I find any information about if I can add to this bond, I would appreciate any advice on this :undecided

It seems to be assumed that people are "older. wiser" (according to NS&I) and know that fixed term bonds are one-off purchases and that you can't buy the bonds in bits. I can't find anything to that effect in the T&Cs (shockingly badly written they are, too) but it is quite normal that you can only make one deposit into a fixed term, fixed interest rate account.

If you have spare cash you need a home for, have you looked into the interest paying current accounts and the regular savings accounts? They could be better than the PBs.

alanq

Bilbobaggins wrote: »

nowhere can I find any information about if I can add to this bond, I would appreciate any advice on this :undecided

You cannot add but you can buy additional bonds up to the maximum permitted total for each issue.

"26. As Bonds have a specified term, it is not possible to invest further money in a particular Bond once it has been issued. Where a person purchases Bonds of a particular Issue on different dates, a new Bond will be issued in respect of each purchase."
http://www.nsandi.com/files/published_files/asset/pdf/65-guaranteed-growth-bonds-brochure.pdf