NS&I announces changes to its Income Bonds
- Income Bonds holders can now manage accounts by phone and online
- All accounts now earn a single rate of interest – currently 1.75% gross (1.76% AER), variable
- Previously, those with under £25,000 invested earned 1.45% gross (1.46% AER), variable
NS&I today announced changes to its Income Bonds. The changes are part of the final stage of NS&I’s programme to simplify and modernise its savings range, and to grow the number of customers transacting with it directly by post, phone and online.
The key changes to Income Bonds are:
- Online and phone management is now available for Income Bonds customers.
- Bond certificates are replaced by transaction records. Previously, savers received a separate Bond certificate after each investment they made into Income Bonds. Now they will receive a transaction record which shows the amount invested and the total amount in their Income Bonds account.
- The annual statement will now include an annual transaction history so savers receive details of all their transactions for the year in one document.
- The product previously offered two rates of interest: a lower rate for those with under £25,000 invested (1.45% gross, 1.46% AER) and a higher rate for those with £25,000 or more invested (1.75% gross, 1.76% AER). From last Saturday, 6 April 2013, the lower interest rate was removed and those customers with an investment of less than £25,000 moved to the higher rate of interest earned by those with an investment of £25,000 or more.
Jane Platt, Chief Executive, NS&I, said: “Our modernisation programme is now entering its final stages. We’ve transformed NS&I’s product range: delivering simpler, more straightforward savings products which give our customers the telephone and online access that they want.”
All Income Bonds holders will be sent a leaflet outlining the changes with their annual statement which will be sent before the end of May 2013.
Notes to Editors
- From 6 April 2013 new customers under the age of 16 years old could no longer buy Income Bonds. Existing customers under the age of 16 can continue to deposit into and withdraw from an existing Income Bonds account. NS&I offers alternative products for under 16s, including Children’s Bonds. NS&I has written to these customers individually to explain this change.
- From 6 April 2013 the monthly interest payment made by Income Bonds could only be made by electronic bank transfer (BACS) direct to a customer’s bank account. It will no longer be possible to receive a warrant (like a cheque) which was sent to a customer by post and they then paid into their bank account. NS&I has written to these customers individually to explain this change.
- NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to over 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
- For further information, or to request an interview, please contact the NS&I media team.