Pensioner Bonds Paying 4% Is Just Taking The P I S S

[Liquid Goldfish]

I've just been reading that NS&I are going to launch a bond for pensioners paying 4% which is almost double the best rate that someone under 65 can get.

WTF!!!!!!!!!!!!!!!!!!!!!

WTF!!!!!!!!!!!!!!!!!!!!!

WTF!!!!!!!!!!!!!!!!!!!!!

WTF!!!!!!!!!!!!!!!!!!!!!

Seriously, WTF!!!!!!!!!!!!!!!!!!!!! is going on.

Edited March 26, 2014 by oldsport

[Giordano Bruno]

I've just been reading that NS&I are going to launch a bond for pensioners paying 4% which is almost double the best rate that someone under 65 can get.

WTF!!!!!!!!!!!!!!!!!!!!!

WTF!!!!!!!!!!!!!!!!!!!!!

WTF!!!!!!!!!!!!!!!!!!!!!

WTF!!!!!!!!!!!!!!!!!!!!!

Seriously, WTF!!!!!!!!!!!!!!!!!!!!! is going on.

I thought it was 'up to 4%'. In my experience 'up to' usually means 'less than', sometimes 'a good deal less than'.

[Liquid Goldfish]

I thought it was 'up to 4%'. In my experience 'up to' usually means 'less than', sometimes 'a good deal less than'.

I think It states "up to" only because there will be range of fixed terms (with the 3 year bond paying the most) i.e "ranging from 2.8% for a 1 year bond up to 4% for a 3 year bond". Not because the rates are going to be lower than stated.

The quote I saw was actually "around 4%" for the 3 year bond. So it could even be higher.

Edited March 26, 2014 by oldsport

[workingpoor]

Question: can this be taken advantage of by under 65's by getting older family members to take out the bond for them?

and is the qualifying age 55 or 65?

this is selective interest rates and is blatant age discrimination

[Frank Hovis]

In last week’s Budget, Chancellor George Osborne said the bond would pay ‘market leading rates’. The rates will be set in the autumn, but the indicative rates are 2.24 per cent after tax (2.8 per cent before) for one year and 3.2 per cent (4 per cent) for three years. These rates are far higher than those on offer from banks and building societies.

Halifax, one of the largest savings banks, pays 1.12 per cent (1.45 per cent) for one year and 1.4 per cent (1.75 per cent) for three years. So £10,000 in an NS&I one-year bond could yield £224 - double the amount with the Halifax.

The NS&I rates look good in the light of the Bank of England’s thinking on interest rates, which could start to rise slowly next year, edging up to 2 per cent in early 2017 and staying between 2 per cent and 3 per cent until 2020.

Anna Bowes, from data analysts Savingschampion, says: ‘The Pensioner Bond is likely to be snapped up. It could get the competitive juices of the other savings providers flowing.’

Kevin Mountford, head of savings at comparison site Moneysupermarket.com, says: ‘Banks and building societies will have to react if they see sizeable chunks of money leaving them. It could act as a trigger for them to put up rates.’

http://www.thisismoney.co.uk/money/saving/article-2589263/NS-I-fixed-rate-bond-pensioners-expected-beat-current-market-deals.html

Index-linked bonds were initially only available to over 65s, hence they were dubbed "granny bonds".

[@contradevian]

Question: can this be taken advantage of by under 65's by getting older family members to take out the bond for them?

and is the qualifying age 55 or 65?

this is selective interest rates and is blatant age discrimination

You've got ipads and twitter!

[gf3]

I've just been reading that NS&I are going to launch a bond for pensioners paying 4% which is almost double the best rate that someone under 65 can get.

WTF!!!!!!!!!!!!!!!!!!!!!

WTF!!!!!!!!!!!!!!!!!!!!!

WTF!!!!!!!!!!!!!!!!!!!!!

WTF!!!!!!!!!!!!!!!!!!!!!

Seriously, WTF!!!!!!!!!!!!!!!!!!!!! is going on.

I think you will find that this new bond is open to everybody.

With one caveat you don't die before you reach qualifying age.

So which would you prefer a 2% return on your money or

A 4% return but a 1 in 4 chance that you will be dead before you get to spend it?

Every pound you save after the age of 70 is a pound wasted

The people that are most likely to benefit from this bond are the young. The people that inherit the money afterwards.

Edited March 26, 2014 by gf3

[Bruce Banner]

http://www.thisismoney.co.uk/money/saving/article-2589263/NS-I-fixed-rate-bond-pensioners-expected-beat-current-market-deals.html

You must be 65 or over to be eligible. The only drawback is that the maximum investment is £10,000 per person, which means there are likely to be only a million accounts offered. But a couple can put in a total of £20,000, with a maximum £10,000 in each of two separate bonds.

Well, that's going to make a big difference isn't it? Mustn't divert too much money away from pumping up Labour's housing bubble in the run-up to the election. Oh, wait a minute, these jokers have re-written history, there never was a housing bubble .

Edit:- Now we know why they removed the evidence. http://www.computerweekly.com/blogs/public-sector/2013/11/conservatives-erase-internet-h.html

Edited March 26, 2014 by Bruce Banner

[@contradevian]

http://www.thisismon...rket-deals.html

Well, that's going to make a big difference isn't it? Mustn't divert too much money away from pumping up Labour's housing bubble in the run-up to the election. Oh, wait a minute, these jokers have re-written history, there never was a housing bubble .

Wouldn't matter if the Monster Raving Loony Party were in power. We would still have the same policies and a housing bubble. I'm amazed anyone still believes in our political parties anymore. We are a one party state (the '1% party' in power) with a thin veneer of democracy.

If people choose to waste their time trotting down to the polling station to give these charlatans a mandate I shan't stop them.

Edited March 26, 2014 by aSecureTenant

[Bruce Banner]

Wouldn't matter if the Monster Raving Loony Party were in power. We would still have the same policies and a housing bubble. I'm amazed anyone still believes in our political parties anymore. We are a one party state (the '1% party' in power) with a thin veneer of democracy.

If people choose to waste their time trotting down to the polling station to give these charlatans a mandate I shan't stop them.

I shall be trotting down to the polling station to do the thing they fear most, vote UKIP.

[gf3]

I shall be trotting down to the polling station to do the thing they fear most, vote UKIP.

Yes I think this is more likely to give them a bloody nose than anything else I can do.

[The Knimbies who say No]

Osborne is trying to square the circle of maintaining bubble house prices and head off criticism from a vocal savers lobby, mostly comprised of a key voter bloc, the elderly.

He's picking the winners, high asset prices and high rates.

Just the continuation of the financial repression of the young, albeit the most blatant piece of discrimination to date. Effectively another winter fuel allowance. Sickening.

[@contradevian]

Osborne is trying to square the circle of maintaining bubble house prices and head off criticism from a vocal savers lobby, mostly comprised of a key voter bloc, the elderly.

He's picking the winners, high asset prices and high rates.

Just the continuation of the financial repression of the young, albeit the most blatant piece of discrimination to date. Effectively another winter fuel allowance. Sickening.

All quite clever though isn't it.

Pensioners get higher rates and their bungalows stay at bubble values.

Oh and the only protest party we get is an even fogier, nimbier version of the Tory party. Yeh that'll show 'em!

And we knock Putin.

[gf3]

Osborne is trying to square the circle of maintaining bubble house prices and head off criticism from a vocal savers lobby, mostly comprised of a key voter bloc, the elderly.

He's picking the winners, high asset prices and high rates.

Just the continuation of the financial repression of the young, albeit the most blatant piece of discrimination to date. Effectively another winter fuel allowance. Sickening.

But all they are getting is money they will never live to spend.

[Dorkins]

On the plus side, I think they're only allowed to take out £10k worth of these bonds per person, so an extra 2% interest is only a giveaway of £200 a year before tax and £160 per year after tax. It's an injustice, but only a fairly small one.

[The Knimbies who say No]

But all they are getting is money they will never live to spend.

Irrespective of whather the money lies in a bank account unspent, or represents a vital extra slice of income, the policy is terrible. Lest us forget that this idocy is being funded by taking the money from others via issuance of debt.

I get the impression some of the types this policy is aimed at like the idea of being in a position of financial power to their offspring, a magnanamous philanthropist to call upon write cheques for cars, rent, house deposits etc. The idea of simply leveling the playing field and letting everyone get on with their lives with minimal interference is a total nono, they need to feel useful. Some are Tories, who often spout off about "Equality of opportunity", lolz.

Edited March 26, 2014 by The Knimbies who say no

[olliegog]

just to clarify - there are other savings accounts only available to 'the young'

so far as I know - the 4% on the three year bond is taxed (over 65s pay tax too you know)

most over 65s do not have 10K sitting around idly waiting for a chance to tie it up for 3 years.

Edited March 26, 2014 by olliegog

[gf3]

Irrespective of whather the money lies in a bank account unspent, or represents a vital extra slice of income, the policy is terrible. Lest us forget that this idocy is being funded by taking the money from others via issuance of debt.

I get the impression some of the types this policy is aimed at like the idea of being in a position of financial power to their offspring, a magnanamous philanthropist to call upon write cheques for cars, rent, house deposits etc. The idea of simply leveling the playing field and letting everyone get on with their lives with minimal interference is a total nono, they need to feel useful. Some are Tories, who often spout off about "Equality of opportunity", lolz.

Yes but it isn't anything worth getting your heckles up over. Say you reach 65 and you put £10,000 into this bond. you get £400 a year in free money. When you reach 90 and you have been in this bond for 25 years you have had £10,000 in free money. Then you croak it and never get to spend the original £10,000.

Did you know ZOPA are offering 5% and this money can be held in an ISA because of changes in the buget?

Edited March 26, 2014 by gf3

[The Knimbies who say No]

just to clarify - there are other savings accounts only available to 'the young'

so far as I know - the 4% on the three year bond is taxed (over 65s pay tax too you know)

most over 65s do not have 10K sitting around idly waiting for a chance to tie it up for 3 years.

Yes but it isn't anything worth getting your heckles up over. Say you reach 65 and you put £10,000 into this bond. you get £400 a year in free money. When you reach 90 and you have been in this bond for 25 years you have had £10,000 in free money. Then you croak it and never get to spend the original £10,000.

Did you know ZOPA are offering 5% and this money can be held in an ISA because of changes in the buget?

It's ok, it's only a little bit, and it's taxed.

One of you is saying few people have enough to take advantage, the other is saying the target audience have so much the can't spend it....

Edited March 26, 2014 by The Knimbies who say no

[Sancho Panza]

I shall be trotting down to the polling station to do the thing they fear most, vote UKIP.

It does seem as if there's a lot of bile being spewed out about Ukip at the moment.C4 is doing a 'Who is Nigel Farage' show and then all the revelations about people who'd been Labour or Tory members for thirty years before joining ukip.

[Ash4781]

I guess these investments will form part of the ns and I financing requirement so will affect other products ie they stay as others go off sale. For a while they had so many withdrawn products. With cash isa interest rates so low premium bonds become attractive.

[Bruce Banner]

It does seem as if there's a lot of bile being spewed out about Ukip at the moment.C4 is doing a 'Who is Nigel Farage' show and then all the revelations about people who'd been Labour or Tory members for thirty years before joining ukip.

Yes, when the spin doctors from all three major parties unite against 'something', that 'something' is probably worth voting for. Anyway, what choice do we have? Labour created the bubble for political reasons and the coalition (Conservatives & Libdems), after first criticising the bubble, now deny it ever existed and are pumping it up for political reasons.

[Wurzel Of Highbridge]

Question: can this be taken advantage of by under 65's by getting older family members to take out the bond for them?

and is the qualifying age 55 or 65?

this is selective interest rates and is blatant age discrimination

Interest rate apatite.

http://www.youtube.com/watch?v=hIoGedstSdo

[gf3]

It's ok, it's only a little bit, and it's taxed.

One of you is saying few people have enough to take advantage, the other is saying the target audience have so much the can't spend it....

By the way I have just worked out what this £10,000 bond is all about.

http://www.dailymail.co.uk/news/article-2543006/The-rising-cost-dying-Average-funeral-costs-7-600-thousands-struggling-afford-fitting-send-off.html

[kjw]

As I said on another thread.. it's a bribe for the crinklies [who vote]... paid for by the young 'uns [who don't]