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

Former_MSE_Paloma

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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Doc_N

Some might say (I couldn't possibly comment) that the Chancellor has already done enough for pensioners and might need to direct some efforts towards young people.

And that it's only the grey voting power that's made it the way it is........

agrinnall

I'm not sure why anybody would think this wouldn't happen at the end of the fixed term, it's what every other institution does and there's no reason why NS&I would be any different.

Castle

And there's no election this year!

Ectophile

The whole thing was a bribe to pensioners to get them to vote Conservative. Now the election's over, they have no reason to pay a stupidly high interest rate any more.

Doc_N

Bribes, more bribes, and broken promises - that's the Government we're stuck with.

Oh - and a failing NHS starved of cash.

Ken68

Yes I agree Doc.....too much done for the older generation, free bus pass, free medicine, winter fuel allowance etc ....time to help the young working.


Signed OAP.

teddysmum

agrinnall wrote: »

I'm not sure why anybody would think this wouldn't happen at the end of the fixed term, it's what every other institution does and there's no reason why NS&I would be any different.

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.

McKneff

Could someone off the top of their head tell me how much interest I would lose if I made a partial withdrawal of £5k please. Next week.




No calculator to hand.....

agrinnall

From the key features leaflet:

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

frugalfran

I'll be taking my money out for sure, then will wait and see what happens. If everyone did that I'm sure it would cause problems for the Gov't and they might have to re-think and offer a more attractive rate. So I'll be walking off and trying to help spur them into action.....