Bond Maturing

Tuesdays_Mum

My elderly mum has just received a letter from Barclays advising that her bond is about to mature. They advise that if she does not instruct them otherwise, they will reinvest her money into a maturity bond. Normally she would pop into a branch to get some advice regarding this but of course it's not an option at the moment - can anyone tell me if it is inadvisable for her to allow them to reinvest her money in a maturity bond? 

afis1904

How much money is it? What was the rate of the maturing bond? What rate is she being offered? Does she need any of the money?

Albermarle

The word 'bond' means different things , so you will need to give more detail.

Tuesdays_Mum

She doesn't know very much about the bond that she had unfortunately (she's in her late 80s) and Barclays don't seem to have given her any information about the maturity bond. All I know is she has £25K and no, she doesn't need it currently. 

Tuesdays_Mum

Oh, I don't have that unfortunately - my dear old mum hasn't got a clue what she signed up for and can't go and check due to social distancing. Thank you anyway. 

xylophone

Would it be possible for your mother to post you the maturity notification so that you can at least see the nature of the bond and what options are offered?

Tuesdays_Mum

Well, she read the letter out to me and it seemed rather generic but if you think that sort of information should be included in what they've sent her, I can't rule out the possibility that she is missing something!  She WILL be able to send it to me so I'll have a look, thank you. 

Tildaplum

the key is what interest rate to Barclays are offering - often maturity bonds are very poor value because they offer a very low interest rate

Tuesdays_Mum

Ok, I'll check that out, thank you very much.  

Tuesdays_Mum

I still don't know the details of her current bond, but the Maturity Bond has a one year term with a fixed rate of 0.70% gross pa. 

xylophone

but the Maturity Bond has a one year term with a fixed rate of 0.70% gross pa. 

She could do better.
https://www.moneysupermarket.com/savings/fixed-rate-bonds/