Maturing NS&I Pensioner Bonds
It’s time to switch elsewhere
With its unique 100% protection, NS&I products have always been firm favourites and in January this year the extremely competitive rates offered by the 65+ Guaranteed Growth Bonds, dubbed Pensioner Bonds, led to them being one of the most popular savings products ever.
Therefore with many 1 year bonds coming up for maturity in January, it’s disappointing, although not wholly unexpected, that NS&I is not offering another version of its 65+ Guaranteed Growth Bond. Instead it is offering a roll over into the current standard NS&I Guaranteed Growth Bonds. These offer a wider choice of terms, but the rates are very uncompetitive.
Quite simply, much better rates can be found elsewhere, so we would urge savers to move their funds – not simply roll the money over. By doing nothing, the extra interest earned by taking advantage of the competitive rates on offer earlier in the year, will be eroded by the poor rates being offered on maturity.
Given that the maximum amount allowed into the 1 Year Pensioner Bond was just £10,000 per person, the maturity proceeds should easily be protected with a new provider, up to the new UK Financial Services Compensation Scheme (FSCS) limit of £75,000 per person, from 1 January 2016.
So, as long as the new provider is a protected by the UK FSCS or equivalent, why accept a much lower return.
If you like to discuss these options and how to get the very best rates for your needs, why not speak directly to one of our savings advisers on 0800 321 3581.
Best Rates elsewhere
NS&I 1 Year Guaranteed Growth Bond (Issue 57) = 1.45% gross/AER
RCI Bank 1 Year Fixed Term Savings Account – 2.06% gross/AER
NS&I 2 Year Guaranteed Growth Bond (Issue 51) = 1.70% gross/AER
RCI Bank 2 Year Fixed Term Savings Account – 2.35% gross/AER
NS&I 3 Year Guaranteed Growth Bond (Issue 51) = 1.90% gross/AER
FirstSave 3 Year Fixed Rate Bond - 7th Issue – 2.73% gross/AER
NS&I 5 Year Guaranteed Growth Bond (Issue 47) = 2.55% gross/AER
United Trust Bank Fixed deposit 5 year bond – 3.10% gross/AER