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Mrs Bear

Maturing Ns&i Bonds

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May be of interest to anyone with a bond coming up soon.

Mind matures 17th Dec. Recent letter said they'd write about 10 days before maturity with option to cash in or rollover.

I want to cash in and window is very short, esp. given Christmas and the snow backlog we're bound to get.

Phoned them yesterday to voice concern - suppose my letter didn't arrive in time? What if you happened to be on holiday? If a bond had then automatically rolled over for say a week, what penalty would you be liable for?

Answer, the standard 90 days' interest, but they would consider cases on merits if explanatory letter enclosed.

However, the person I spoke to said she'd send me an option letter straight away if I wanted (yes please), though it wouldn't show what interest my bond had accrued.

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Thanks for that Mrs B. My bond expires Jan and as I'm overseas I need to get my act into gear considering what you've said. What was the roll over rate they offered btw?

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Thanks for that Mrs B. My bond expires Jan and as I'm overseas I need to get my act into gear considering what you've said. What was the roll over rate they offered btw?

Since I want to cash in, I didn't ask. Have a feeling I've read that it's going to be way below last time, though - maybe 2%-ish? If that. Last year's rollover rate was relatively v good.

Why don't you give them a ring? Open UK time 7 am to midnight and I've always found them very helpful.

BTW (as I expect you know) if you do want to rollover you don't need to do anything.

IMO there should be a facility to choose online, esp. for people like you.

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[Mrs Bear we have Index linked savings certificates are these the 'Bonds' that you have referred to ? If not then our experience is not relevant but if they are the same then I can tell you that at present we are in Spain but our certificates matured on 29th November 2010. They were invested for 3 years at 1.35% above RPI. I have called them today and as they have not heard, the money has automatically been re invested in another 3 year issue at 1% above RPI that at present is running at 4.6% !!!!!. If we wanted to cash the certificates in we would get all our money back with no penalty. It seems to me that we will keep our cash in those certificates. By the way we hold double the allowed amount by holding 'In trust' for eachother, I hope everyone knows about that . Hope this helps.

quote name=Mrs Bear' timestamp='1291366969' post='2809382]

May be of interest to anyone with a bond coming up soon.

Mind matures 17th Dec. Recent letter said they'd write about 10 days before maturity with option to cash in or rollover.

I want to cash in and window is very short, esp. given Christmas and the snow backlog we're bound to get.

Phoned them yesterday to voice concern - suppose my letter didn't arrive in time? What if you happened to be on holiday? If a bond had then automatically rolled over for say a week, what penalty would you be liable for?

Answer, the standard 90 days' interest, but they would consider cases on merits if explanatory letter enclosed.

However, the person I spoke to said she'd send me an option letter straight away if I wanted (yes please), though it wouldn't show what interest my bond had accrued.

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Just phoned them (as per Mrs Bear's advice :)) The rollover rate is 2.2%. :( I need to send them a letter with full instructions to arrive no later than the expiry date of the bond. Ho hum - wonder where to stash the funds for easy access.....

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[Mrs Bear we have Index linked savings certificates are these the 'Bonds' that you have referred to ? If not then our experience is not relevant but if they are the same then I can tell you that at present we are in Spain but our certificates matured on 29th November 2010. They were invested for 3 years at 1.35% above RPI. I have called them today and as they have not heard, the money has automatically been re invested in another 3 year issue at 1% above RPI that at present is running at 4.6% !!!!!. If we wanted to cash the certificates in we would get all our money back with no penalty. It seems to me that we will keep our cash in those certificates. By the way we hold double the allowed amount by holding 'In trust' for eachother, I hope everyone knows about that . Hope this helps.

No, the bonds I meant were the Guaranteed Growth bonds. But many thanks anyway.

Your IL certs. aren't available any more, I think, and nor is my type of bond. I wish I'd bought some ILs!

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Just phoned them (as per Mrs Bear's advice :)) The rollover rate is 2.2%. :( I need to send them a letter with full instructions to arrive no later than the expiry date of the bond. Ho hum - wonder where to stash the funds for easy access.....

Last time I checked NR were still offering 2.5% easy access, Saga and Santander (B & Bing) slightly more.

I've got minor stashes in all of those - always keep a bit in everything in case of wanting to re-stash later.

My NR bonus expires in Jan, though - as the nice helpful person told me without my asking when I phoned to check the rate. Have always found NR very helpful, and when your bonus expires there's usually a new a/c with a much better rate that's a doddle to switch to online.

Edited by Mrs Bear

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Hah you've always got your finger on the pulse Mrs B. Thanks very much for the info and I agree re the NS & I call centre. Great service, didn't have to jump through hoops before I got to someone or before someone would speak to me AND I could understand everything they said. Bonus these days <sounding like old fogey again>

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BTW The Yorkshire Building Society (now amalgamated with Chelsea) have a 2.10% instant access (internet) account. I've been with them for some time and found good service there too.

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May be of interest to anyone with a bond coming up soon.

Mind matures 17th Dec. Recent letter said they'd write about 10 days before maturity with option to cash in or rollover.

I want to cash in and window is very short, esp. given Christmas and the snow backlog we're bound to get.

Phoned them yesterday to voice concern - suppose my letter didn't arrive in time? What if you happened to be on holiday? If a bond had then automatically rolled over for say a week, what penalty would you be liable for?

Answer, the standard 90 days' interest, but they would consider cases on merits if explanatory letter enclosed.

However, the person I spoke to said she'd send me an option letter straight away if I wanted (yes please), though it wouldn't show what interest my bond had accrued.

I complained directly to NS&I boss Jane Platt about the short notice I was given on my bond and lack of information (no new rates included) she promised to review what had happened.

Not long after NS & I have admitted they bungled the way maturing bonds were handled

NS&I promises to review its bonds bungle

By Sylvia Morris

1 December 2010

National savings and Investments (NS&I) admits it did not clearly spell out the options available to savers with bonds maturing last month.

Failure: NS&I will review its communications procedure

It has promised to review its treatment of those now trapped in its low-paying bond because they did not know how NS&I works.

Saver Dave Heseltine, of Bridgnorth, Shropshire, says: 'NS&I's letter does not mention that 90 days' interest will be deducted if you are even a day late returning the form.

'It will cost me £114 to move my money now.'

When an NS&I bond matures, you must tell them what you want to do with your money by that date.

Otherwise, it puts the money into a similar fixed-rate, fixed-term bond and charges the equivalent of 90 days' interest if you want it back.

Last year, savers were attracted by one-year Guaranteed Growth Bonds paying 3.16% (3.95%) before tax. But those who have been rolled into the new one are paid 1.76% (2.2%).

An NS&I spokesman told Money Mail: 'From the beginning of December, we are amending the letter to make it more explicit about the need to make a decision before the bond matures.

'We'll continue to review extenuating circumstances.

A pre-maturity letter was sent out by second-class post between 28 September and 1 October for bonds maturing from 26 October.

'A second followed just ten days before each bond's maturity date — which did give the full options.'

http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=519160&in_page_id=7

If anyone is trapped in the 2.2% they might be able to get out.

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After I phoned on the 2nd, received my option letter today (7th).

Even posting it back tomorrow will not exactly give a huge amount of time (for bond maturing 17th) ,esp. given Christmas and all the oop north snow.

Might ask for a proof of posting in case of delays.

There was a piece in Sunday Times Money on this (i.e. not enough time). They've had a lot of complaints about it, apparently.

IMO the letters should be sent out at least a month in advance, and there should be an online option.

Edited by Mrs Bear

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I sent mine back recorded delivery and had no problems with the timeline. If I'm sending bonds I always send registered post - at least you have signatures then.

I sent mine today. Given the volume of mail they must receive I didn't do recorded - just got a proof of posting, in case.

Maybe a mistake. :(

Must say I didn't feel very happy putting all those personal details + bank details + a bond in the post.

Having said that, I've hardly ever had anything go astray. Fingers Xed.

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My offer letter arrived today.

I'm going for the 5 Year 3.9% option with loss of 90 days interest on sums redeemed early.

You can't go wrong with that option, as after a year you're better off even if you cash it in and forfeit the 90 days interest as compared with 2.2% for the one year option. I pointed this out to the lady on their helpline and her reply, with a hint of an approving laugh, was "you could look at it that way".

They now give twenty days after the maturity date to get your instructions to them.

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My offer letter arrived today.

I'm going for the 5 Year 3.9% option with loss of 90 days interest on sums redeemed early.

You can't go wrong with that option, as after a year you're better off even if you cash it in and forfeit the 90 days interest as compared with 2.2% for the one year option. I pointed this out to the lady on their helpline and her reply, with a hint of an approving laugh, was "you could look at it that way".

They now give twenty days after the maturity date to get your instructions to them.

Actually you can go wrong if they don't offer any options to new investors, only to reinvestment. What if they offered a 4 year rate of 5.0% in one years time? Then your total return would be 2.2 for one year and then 5.0% for 4 years which is better than 3.9% for 5 years. The break even reinvestment after one year is 4.33%. You can't shift out of your 5 year, only cash in.

I not saying they will do this of course, but it's not a no brainer as you make out.

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Actually you can go wrong if they don't offer any options to new investors, only to reinvestment. What if they offered a 4 year rate of 5.0% in one years time? Then your total return would be 2.2 for one year and then 5.0% for 4 years which is better than 3.9% for 5 years. The break even reinvestment after one year is 4.33%. You can't shift out of your 5 year, only cash in.

I not saying they will do this of course, but it's not a no brainer as you make out.

Have you seen anything better out there David Cameron? I'm quite tempted by the 5 year guaranteed growth bond myself as I can't find anything else very tempting at all. I want instant access.

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Actually you can go wrong if they don't offer any options to new investors, only to reinvestment.

That seems a valid point.

However what do you think would make them offer 5% in a years time? Can't it only be rising interest rates? Therefore people tied into the 5 year bond can cash in when rates are high enough to warrant losing the penalty and move the money to banks which will then reduce the amount invested with NS&I. Then NS&I would have to offer better rates to new investors to get money back in.

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