Pensioner Bonds

NS&I

[Deleted User] wrote:

Hi,



sorry for the delay.

Sent a copy as requested.

No problem.

I can confirm that the email you received is a genuine email from NS&I.

[Deleted User]

Hi,

NS&I wrote: »

No problem.

I can confirm that the email you received is a genuine email from NS&I.

Oops, sorry folks.

Wasn't sure so was just going to bin it.

I'll have a read of it now.

Thanks NS&I.

joe134

[Deleted User] wrote:

Hi,



Oops, sorry folks.

Wasn't sure so was just going to bin it.

I'll have a read of it now.

Thanks NS&I.

Oh Ye of little faith.;)
If you cannot trust the Gov, who can you trust:rotfl:

Eco_Miser

joe134 wrote: »

Oh Ye of little faith.;)
If you cannot trust the Gov, who can you trust:rotfl:

Fortunately NS&I is not the Government, it is the Treasury, who have been around a lot longer and don't change every 5 years.

joe134

Eco_Miser wrote: »

Fortunately NS&I is not the Government, it is the Treasury, who have been around a lot longer and don't change every 5 years.

they are good to last the 5 years;
usually call before, when it suits them.:beer:

[Deleted User]

Hi,

just heard on Breakfast news that the interest rate for the 1 year bond will fall to 1.45%.

Here's a link to NS&I with the options on maturity.

Primrose

I think this was bound to happen. It was beyond the bounds of probability that the same high interest rates would continue to be offered on maturity.

talexuser

Primrose wrote: »

I think this was bound to happen. It was beyond the bounds of probability that the same high interest rates would continue to be offered on maturity.

I think you mean offered after the election...:)

redux

Primrose wrote: »

I think this was bound to happen. It was beyond the bounds of probability that the same high interest rates would continue to be offered on maturity.

My mum's financial adviser said go for the one year bond, in case you unexpectedly need the money back sooner.

I said go for the longer one, as even if you cancel it early and lose some interest it's still better than the short one for almost any period, and there's no guarantee the one year holders will get a decent renewal deal.

She took my advice.

alanq

Am I missing something?

Reinvestment options:

1-year bond 1.45% so £145 gross on £10000 after one year.

5-year bond 2.55%. Cash in after one year and incur 90 day penalty.
(365-90)*.0255*10000/365=£192.12
[or should that be (366-90)*.0255*10000/366=£192.29 as 2016 will be a leap year?]

So unless one cashes in very early and has to pay 90 days penalty on 2.55% instead of 1.45% isn't one better off accepting the 5-year deal?

According to MoneyFacts 1.92% is only beaten by an FSCS guaranteed bank for a 1-year fixed rate by Aldermore which offers 2% and that does not offer access before maturity whereas NS&I does with a penalty.