National Savings & Investments (NS&I) today announced the latest stage in its five year programme to simplify and modernise its savings range. The changes will affect NS&I’s Index-linked and Fixed Interest Savings Certificates, Guaranteed Growth/Income Bonds and Children’s Bonus Bonds.
Following last year’s announcement that NS&I’s range of savings and investments will no longer be available through the Post Office with the exception of Premium Bonds, NS&I will be soon be changing its fixed term investments to make them more consistent and easier to understand.
The minimum age for all investors will be set at 16 and savers will be provided with more regular updates about their investments.
There will also be changes to customer access. From 20 September 2012 a new banking system will be introduced for NS&I’s fixed term investments range, allowing customers who buy or renew their investments after this date to view and manage them online. This facility is already available for Premium Bonds and NS&I’s Direct Isa and Direct Saver.
Penalty for cashing in early
New penalty arrangements will be introduced for the early encashment of the Children’s Bonus Bonds (which will be called ‘Children’s Bonds’ after 20 September 2012) and Savings Certificates to bring them in line with other NS&I investments. If customers cash their investment in before the end of the agreed term, 90 days’ interest will be deducted from the amount being cashed in.
Customers who cash in their index-linked savings certificates will miss out on the index-linking on their certificate for that year, even if only part of it is cashed in.
No action required by savers
NS&I will write to savers who hold NS&I fixed term investments thirty days before their investment matures to inform them of the changes and the options that are available to them. If customers do not move their money, their investment will be automatically renewed by NS&I.
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