NS&I 65+ Guaranteed Growth Bonds

It is fair to say we are a little shocked at the recently announced reinvestment terms for these very popular Bonds. The first batch of 1 year Bonds which currently pay interest of 2.8% gross/AER are due to mature on 15th January 2016. There are three options on maturity. Customers can reinvest in a new 1 year Bond, reinvest in a 2, 3, or 5 year Bond or cash in. It is the new rates of interest that are a shock. These are as follows;

1.45% gross/AER          1 year Bond

1.70% gross/ AER         2 year Bond

1.90% gross/AER          3 year Bond

2.55% gross/AER          5 year Bond

In other words, the 1 year Bond rate has virtually halved from the current rate and the new rates for all the new issues are now uncompetitive as higher rates are available from Banks and Building Societies over the same terms.

If you have a maturing 1 year Bond and you take no action, you will automatically be reinvested in a new 1 year Bond. If you don’t wish to do this, you should contact NS&I at least 2 working days before your Bond maturity date. If you miss this deadline and your Bond is reinvested you can cancel it by telling NS&I within 30 days of the new Bond start date.

More information can be found by clicking the following link;   http://www.nsandi.com/65-guaranteed-growth-bonds

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