Pensioner bonds

Alter_ego

The NSANDI 3 year 4% pensioner bonds are almost mature now. Anyone got a suggestion where to put mine for max interest? I have done enough regular savers and interest paying current accounts. I am also too old for the stock market.

[Deleted User]

Could it be that NSI will offer something at a preferential rate to those with the 3 year pensioner bond maturing in January? I look after my mother's finances and I got an email for her this week from NSI just saying that her pensioner bond will mature soon and that they will be in touch with "options" nearer the time. here's hoping...

jimjames

Alter_ego wrote: »

I am also too old for the stock market.

Out of interest, how old is too old for the stock market? If you're tying money up for repeated periods of multiple years that would indicate it's not money you need now

ColdIron

If you liked the 3 year 4% bond, how about the 3 year Guaranteed Growth Bond at 2.20%?

Alter_ego

jimjames wrote: »

Out of interest, how old is too old for the stock market? If you're tying money up for repeated periods of multiple years that would indicate it's not money you need now

It's true that I'm tying it up for 2-3 years at a time. But not in investments that could take a sudden nosedive. Too old is 75+

Alter_ego

The options are on NSAnDI website now. 2.2% for 3 yrs and a few other options for different terms.

Pete_and_Marg

We've had the letter from NS&I now. 1.5% for 1 year, 1.7% 2 years, 2.2% 3 years, 2.25% 5 years. 2 and 5 year options only for people renewing a maturing bond, the others are on general sale. Default if you don't tell them what to do is the 3 year one, which seems like a reasonable deal.

nilrem_2

I am just going to leave mine to default to the 3yr bond at 2.20%. Considering that you have the option to cash in if you pay a 90day interest penalty, it does not make sense going for anything less than the 3 yr bond.

If in 12 months time far better fixed rates become available you can always just pay the penalty and switch and still be better off than if you took the 1 yr bond.

Terry98

nilrem wrote: »

I am just going to leave mine to default to the 3yr bond at 2.20%.

That seems the best solution but what annoys me is the maturing bonds beat inflation and this option looks like it will be at least 50% lower than inflation.

nilrem_2

Terry98 wrote: »

That seems the best solution but what annoys me is the maturing bonds beat inflation and this option looks like it will be at least 50% lower than inflation.

Sadly true but don't forget the original investment had a maximum of £10k at a very decent rate whilst the new issue has a max of £1,000,000.
The 2.20% is near the top in terms of fixed rate savings and the only ones near are all the newer banks which many of us don't wish to use.
The other advantage of course is being able to withdraw capital if absolutely necessary (with a penalty) which others don't normally allow.

As you say it could be better but compared to others this does appear to be the best at the moment.

capital0ne

Alter_ego wrote: »

I am also too old for the stock market.

Warren Buffett is 87 - someone ought to tell him he should quit now!
https://en.wikipedia.org/wiki/Warren_Buffett
You can use investments to reduce inheritance tax by investing in certain AIM shares, maybe woth a bit of your time researching that. Good luck