Pensioner government Bonds
Just read the 1year Pensioner bond interest rate has been reduced from 2.8% to 1.4% the 3 year stays at 4%. What do you think ?
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Does anyone have the 1 year bonds?
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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 ?
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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.
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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
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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 )0 -
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.
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
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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.
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KjillNN has explained a lot, my info came from the Telegraph which as KjillNN states must be giving the wrong impression . But thanks for your input brue, mine is a 3year bond.
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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.Best rates at the moment are on current accounts. We have stopped using ISAs .
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ISAs still help to reduce the tax bill.
In future, only if you have so much saved that you will exceed the tax free interest allowance. Even then, the rate after tax in a current account may well be better than any ISA.
Good suggestions here........
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ISAs still help to reduce the tax bill.
In future, only if you have so much saved that you will exceed the tax free interest allowance. Even then, the rate after tax in a current account may well be better than any ISA.
Good suggestions here........
Stocks and Shares ISA ? Current FTSE 100 yield 4.08% - this is not advice !
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Just been doing sums oursleves and current account interest beats ISA interest even after taking tax into account. No tying your money up for any length of time, always instant scces should you require OR EVEN BETTER should a decent rate come along out
of the blue
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Always best to find things for yourself, so many different permutations with money!
But people have also been helpful on here too.
Guaranteed no fees no commission for promoting any particular place to put your money.
Every persons needs and expectations are different, at the end of the day you can only compare and contrast before 'jumping'. I
like unbiased suggestions that won't be lining anyones's pocket0 -
The headline is sensationalism .The bonds mature with the guaranteed interest but the scheme will not be continued
Write your comments here...Think I may be due an appology Bob do you?
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Happy to pass on what we have discovered.
We are of course all different, so some accounts will suit one but not others.
OH is not a taxpayer as her pension is miniscule, so most of our savings are in her name. For her, ISAs are useless.
Next Tax Year, with the new savings allowance, I will be able to have a bit more in my name.
Even so, current accounts are likely to be better for me than ISAs.
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Happy to pass on what we have discovered.
We are of course all different, so some accounts will suit one but not others.
OH is not a taxpayer as her pension is miniscule, so most of our savings are in her name. For her, ISAs are useless.
Next Tax Year, with the new savings allowance, I will be able to have a bit more in my name.
We are in a similar position but I work part time so under the personal allowance - I hope that you'll have some 'released' to you in the new in financial year - possession is 9/10ths of the law
I'm not telling my OH
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OH has transferred 10% of her allowance to me as she has less income than her PA, so that saves me £200 in tax.
But she still has unused PA, so we keep more savings in her name than mine.
Next TY, with the £1000 interest allowed before being taxed, we will work out what I could have and move money accordingly.
Good to equalise things as far as possible at our age, just in case care home fees should come into the discussion.
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The headline is sensationalism .The bonds mature with the guaranteed interest but the scheme will not be continued
Write your comments here...Think I may be due an appology Bob do you?
Write your comments here...Not quite sure what you mean by that .If you thought I meant that you were sensationalising I can assure you that was not intended. The red tops are always looking for a headline and the telegraph has long be amongst the ranks.
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Well, B2, I'm sure you are just a young person compared to me! So no need to worry yet.
Care Home Fees are just another thing which hopefully we will not need to worry about, but it is best to be prepared.
My Mum lived to be almost 98 and was totally healthy till she was 93, so I am trying to emulate her.
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Well, B2, I'm sure you are just a young person compared to me! So no need to worry yet.
Care Home Fees are just another thing which hopefully we will not need to worry about, but it is best to be prepared.
My Mum lived to be almost 98 and was totally healthy till she was 93, so I am trying to emulate her.
No not reached state retirement age yet, and won't for another 6 years
In our road we have had lots who have lived to be 100+ in good helath our oldest being 4 days short of her 106th and had stayed in the
house until the last 2 years - I aiming to emulate them. I hope you emulate your mother at least you will have some of those genes0 -
Wow!!! Long lived people in your street!
My Dad died suddenly age 64, so I have bypassed him fortunately.
My Mum suffered from angina for about 15 years, but lived on pills, goodness knows why she was never offered an operation. Norway does not value its elderly it seems.
I also had angina for 9 months, but have had a triple bypass so am now 110%. Or as my daughter said...."very perky" . I am taking that as a compliment!
I am planning on being around for a long time yet.
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