Changes to NS&I fixed term investments
NS&I have looked after the nation’s savings for over 150 years, and now 26 million people trust them with their money. Like any organisation, they have to move with the times, so, they’re modernising their systems and encouraging their customers to deal with them directly – online, by phone and by post.
NS&I are also simplifying their range of accounts and investments to make them more consistent and easier to understand. As part of these plans they’re making changes to their fixed term investments. But rest assured that every penny invested with them is still guaranteed 100% safe.
Read on to find out more or watch their video explaining the changes.
What are fixed term investments?
They are investments that last for a set period of time, known as a ‘term’. NS&I's current range of fixed term investments are: Index-linked Savings Certificates, Fixed Interest Savings Certificates, Guaranteed Growth Bonds, Guaranteed Income Bonds and Children’s Bonus Bonds.
Will the changes affect me?
Yes, if you:
- have any existing NS&I fixed term investments that mature on or after 20 September 2012, and you decide to renew them
- buy any new Issues of NS&I fixed term investments that they release on or after 20 September 2012
No, if you only have variable rate savings with NS&I, for example Premium Bonds, Income Bonds or any of their savings accounts.
What are the changes?
The changes are specific to each investment type, but in general they include:
- new ways to keep track of your money: online and by phone
- a penalty for cashing in early
- a minimum age of 16 for all investors
One of the main changes is to their online and phone service – they're giving you more choice in how you look after your fixed term investments. From 20 September 2012 you can manage them online or by calling NS&I – making it a lot easier to keep track of your money. They will also send you a statement each year, so you’ll have a paper record too. Or you can choose to go paperless if you’re happy to receive your records electronically.
They have also introduced a penalty for cashing in a fixed term investment early. Penalties for early withdrawal are already standard practice with most banks and building societies, and some of their investments already have them in place. So they’re now making all their fixed term investments consistent.
When do the changes take place?
The changes start happening on 20 September 2012, but you don’t need to do anything yet. If you’re affected,NS&I will write to you around 30 days before your fixed term investment matures, to remind you that it’s time to decide what to do with your money. They will include full details of the changes to your investment, together with information explaining your choices for renewing or cashing in.
How to find out more
Watch their video explaining the changes.
