Pensioner government Bonds

Does anyone have the 1 year bonds?

The headline is sensationalism .The bonds mature with the guaranteed interest but the scheme will not be continued

I read that from 14 December savers with the 1yr bond will  be given 30 days to move to another scheme , or their bond will automatically be moved to another 1.4% gov bond. 

Bob if you know different please quote ?

I can't do links hh but if you look on the NS+I website all is explained

Bob

If you leave them they will be automatically transferred to a one year Guaranteed Growth Bond at  1.45%. If you are a tax payer this is also taxable and you may have to claim it back at the end of the year if you are a non tax payer.

If you leave them they will be automatically transferred to a one year Guaranteed Growth Bond at  1.45%. If you are a tax payer this is also taxable and you may have to claim it back at the end of the year if you are a non tax payer.

Write your comments here...If you do nothing they will be automatically transferred but they will give you options 30 days prior to maturity and one option is to take the cash, spend it or reinvest it

As I am aware the 1 year bonds taken out between January / May 2015 will automatically be transferred to a similar bond with an interest rate of 1.4% . This will take place 30 days after the 14 December 2015. Unless the bond owner moves to another scheme. Thereafter these 1 year bonds will be discontinued. The 3 year bond will stay unchanged . ( for now )

Plus, after 5th April 2016, all bank interest will be paid gross and you will be able to have a total of £1000 interest tax free if a basic rate tax payer.

The 1 year bonds have a fixed rate of interest for 1 year, interest on current bonds cannot be slashed.

The cut only happens after the bond matures if you re-invest in the same product.

The Telegraph is giving the wrong impression.  Here is what NS&I are actually stating........

Do you have a 1-year 65+ Guaranteed Growth Bond coming up to the end of its term? You’ll need to decide what you want to do next.

We’ll write to you around 30 days before your Bond matures to explain your options in detail. You don’t need to do anything until you receive our letter, and you’ll carry on earning the same interest rate (2.80% gross/AER) until your Bond matures. Here’s a quick summary of what you can do at the end of the 1-year term:

Option 1: reinvest into our standard Guaranteed Growth Bond for 1 year

See below for the rate on offer. If you’re happy with this option and the new interest rate, you don’t need to do anything – we’ll arrange your reinvestment automatically. You’ll start earning the new rate when your existing Bond matures.

Option 2: reinvest into our standard Guaranteed Growth Bond for 2, 3 or 5 years

See below for the rates on offer.

Option 3: cash in your Bond

How do I change which account my withdrawals get paid into?

To choose Option 2 or Option 3, you’ll need to let us know no later than two working days before your Bond matures. Our letter will explain how you can give us your instructions.

Important update about giving instructions for 1-year 65+ Bonds

Whichever option you choose, you’ll carry on earning interest at the original rate (2.80% gross/AER) until your Bond matures.

Find out more

Download our leaflet to find out more about your three options and answers to some questions you may have.

Not heard from us?

Call us if you have any questions or you haven’t heard from us 30 days before the end of your investment term. And don’t forget to tell us if you change your address or contact details.

Call us

Do you have a 3-year Bond?

See Managing your Bond or Cashing in early to find out more about statements, tax and how to cash in early if you need to.

Or read our 65+ Bonds key features leaflet

65+ Guaranteed Growth Bonds

Find out more about your maturity options

Download

or print-friendly version

Hostahousey the three year bond will no doubt change at the end of it's investment span. You just need to be pro-active if you don't want your one year bond money re-invested automatically. Check the best rates going on other saving schemes, looking at the tax free ones first.