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MSE News: Got a 1-yr Pensioner Bond? Your interest will plummet after fixed term ends

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Nearly half a million savers will see the interest rate of their one-year Pensioner Bond plummet from 2.8% to 1.45% at the end of the fixed term...
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Got a one-year Pensioner Bond? Your interest will plummet after the fixed term

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Got a one-year Pensioner Bond? Your interest will plummet after the fixed term

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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And that it's only the grey voting power that's made it the way it is........
If it breaks, well it wasn't working right anyway.
Oh - and a failing NHS starved of cash.
Signed OAP.
Exactly. Anyone who wanted to invest for more than a year could have taken a three year bond with a higher rate, anyway.
Also, many savings accounts have an introductory rate or bonus, that only applies for one year.
No calculator to hand.....
and we will never, ever return.
Can be cashed in early with a
penalty equivalent to 90 days’
interest on the amount cashed
in.
So that's approximately 1/4 of the annual interest, the calculation is therefore:
£5000 * 2.8% * 0.25 = £35