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

edited 15 December 2015 at 5:25PM in Over 50s MoneySaving
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Former_MSE_PalomaFormer_MSE_Paloma Former MSE
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edited 15 December 2015 at 5:25PM in Over 50s MoneySaving
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...
Read the full story:

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

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  • Doc_NDoc_N Forumite
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    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........ :)
  • agrinnallagrinnall
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    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.
  • CastleCastle Forumite
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    And there's no election this year!
  • EctophileEctophile Forumite
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    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.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
  • Doc_NDoc_N Forumite
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    Bribes, more bribes, and broken promises - that's the Government we're stuck with.

    Oh - and a failing NHS starved of cash. :(
  • Ken68Ken68 Forumite
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    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.
  • teddysmumteddysmum Forumite
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    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.
  • McKneffMcKneff Forumite
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    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.....
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • agrinnallagrinnall
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    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
  • frugalfranfrugalfran Forumite
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    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.....
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