At NS&I we are modernising our systems and encouraging our customers to deal with us directly – online, by phone and by post. We’re also simplifying our range of accounts and investments to make them more consistent and easier to understand. As part of these plans we’re making some changes to our fixed term investments.

What are fixed term investments?

They are investments that last for a set period of time, known as a ‘term’. Our 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. No other NS&I accounts or investments are affected.

What are the changes?

One of the main changes from 20 September 2012 is that customers will be able to manage their NS&I fixed term investments online or by phone. We already offer this service for our Premium Bonds, Direct ISA and Direct Saver, and now we’re extending the service to cover more of our investments. We’re also introducing a penalty for cashing in Savings Certificates and Children’s Bonds (the new name for Children’s Bonus Bonds) early. These types of investments are designed to be held for the whole of the chosen term, and our Guaranteed Growth Bonds and Guaranteed Income Bonds already have a penalty for cashing in early, so now we’re making all our fixed term investments consistent.

Here is a summary of the other changes:

Index-linked Savings Certificates and Fixed Interest Savings Certificates

• penalty for cashing in early (and loss of index-linking for Index-linked Savings Certificates)

• minimum balance of £100

• single annual rate of interest for each Issue

• fewer options when your investment matures

• annual statements to help you keep track

• joint investors can combine their investment allowance

• minimum age 16 for new and renewed investments

• charities and societies can no longer hold Savings Certificates after their current investments mature

Guaranteed Growth Bonds and Guaranteed Income Bonds

• higher investment allowance

• annual statements to help you keep track

• joint investors can combine their investment allowance

Children’s Bonus Bonds

• penalty for cashing in early

• single annual rate of interest for each Issue (no bonus)

• now called Children’s Bonds instead of Children’s Bonus Bonds

• annual statements to help you keep track

• Bonds can no longer be held until the child’s 21st birthday

• only parents, guardians and (great) grandparents can invest

• no longer sold in units of £25

When do the changes take place?

The changes start happening on 20 September 2012, but customers don’t need to do anything yet.

The changes will only affect you if you have an existing NS&I fixed term investment that matures on or after 20 September 2012, and you choose to renew it.

If you are affected, we’ll 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. We’ll include full details of the changes to your investment, together with information explaining your choices for renewing or cashing in.

Please note

Our fixed term investments are not currently on general sale, apart from Children’s Bonus Bonds (known as Children’s Bonds from 20 September 2012).

How to find out more

Watch our helpful video at nsandi.com/changes or call us on 0500 007 007

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