The changes – which start to come into effect from 20 September 2012 – affect NS&I’s Index-linked and Fixed Interest Savings Certificates, Guaranteed Growth/Income Bonds and Children’s Bonus Bonds.
As previously announced, Children’s Bonus Bonds will no longer be available from the Post Office. This change will take place from 20 September 2012. From this date, Children’s Bonus Bonds will be renamed, simply, Children’s Bonds, and will only be available directly from NS&I, by post, telephone and online. Secondly, there are changes to the way NS&I’s fixed term investments work, and how they can be managed.
From 20 September 2012, NS&I’s fixed term investments range will join Premium Bonds and NS&I’s Direct ISA and Direct Saver on a new banking system, which will enable customers to view and manage those investments bought or renewed on or after 20 September online. Simultaneously, NS&I is making changes to its fixed term investments range to make it more consistent and easier to understand, and to provide savers with more frequent information on their investment.
John Prout, Retail Customer Director, NS&I, said:
"Since 2008 NS&I has been simplifying its product range. Today we have announced a number of changes to our fixed term investments which will apply to investments renewed from 20 September 2012.
“None of these changes impact customers until the end of an investment term. Even then we believe the changes will be of limited impact for most people, and they need to take absolutely no action before they receive a maturity letter. We are working very hard to ensure that we provide clear and timely information, and when customers receive their maturity letters it will be important for them to familiarise themselves with the details of the changes.
“As well as alterations to some terms and conditions – for example standardising a penalty arrangement for those who cash in a fixed term investment before the agreed maturity date – customers will be given the facility to take more control over their savings. They will receive a record of their investment and interest earned each year and every time they transact, and progressively a full record of their entire savings portfolio online.”
