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Media centre /
Press releaseINCOME BONDS JUST GOT BETTER13 July 2005Notice period removed to give customers easy access From 15 August 2005, National Savings and Investments (NS&I), the government backed savings and investments provider, is making Income Bonds more attractive for customers by removing the account’s notice period and penalty. This latest improvement means Income Bonds offer regular income, with 100% capital protection and easy access to your money. Currently, customers need to give six weeks notice to cash in their Income Bonds without penalty, or they can cash in with no notice by accepting a penalty equal to six weeks’ interest. The new terms, introduced as a result of customer feedback, allow customers access to their money within a few days – with no notice and no penalty. Currently, over 350,000 customers have £7 billion invested in NS&I Income Bonds. Income Bonds are a variable rate product, currently offering up to 4.45% gross p.a.. Making life easy In June 2004, NS&I reduced the notice period for withdrawals from Income Bonds from 90 days to six weeks to meet customer needs. The new terms remove the notice period entirely, making Income Bonds more convenient for savers to manage their income in a way that suits their lifestyle. Customers can earn regular income from their Income Bonds safe in the knowledge their money is 100% secure and can be cashed in whenever they need it. Both current and new customers will benefit from this change. However, requests to cash in Income Bonds received before Saturday 13 August will still be subject to the current notice or penalty requirements. Customers requiring instant access to their money should apply from 15 August. Best buy The new terms mean Income Bonds offer one of the best “access with income deals” on the market. Available by phone, by post and online, Income Bonds are more flexible than most other easy access with income products. Plus, they offer tiered rates, so the more you save, the more you earn. Interest rates
* AER (Annual Equivalent Rate) is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.Developing services for customers Removing the notice period for Income Bonds is the latest in a number of developments that have increased customer access to NS&I’s products and services. In January 2005, Premium Bonds became available to buy online at www.nsandi.com and since the introduction of this facility, customers have invested £50 million each month through the website alone. In October 2004, NS&I introduced a new savings scheme to allow customers to set up standing orders for Premium Bond purchases from £50 upwards, with no limit on how much can be invested each month providing the customer does not exceed the maximum holding of £30,000. To date, over 30,000 people have taken up this option. Peter Cornish, head of customer offer for National Savings and Investments, said, “Our customers will welcome this news. We know from customer research that instant access is important to many of our customers. By removing the notice period for Income Bonds we are making it easier and more attractive for customers to manage their money. “Income Bonds not only offer a safe home with attractive rates of return but now there is the added benefit of instant access which will appeal to existing and new customers alike.” How Income Bonds work Income Bonds offer regular monthly income at attractive variable rates with 100% capital security. Anyone aged seven or over can invest between £500 to £1 million, either individually or jointly. Bonds can also be bought for a child under seven. Interest is paid gross straight into the customer’s bank or building society account every month. Customers who invest more than £25,000 earn a higher rate of interest. How to invest in Income Bonds By phone 0500 500 000 with a debit card
Online www.nsandi.com with a debit card Application forms can be downloaded from www.nsandi.com, requested by phone or are available in Post Offices. Income Bonds cannot be bought at the Post Office. If you would like further information on Income Bonds, please call 0845 964 5000 (from 7am until midnight, 7 days a week). Or visit our website at www.nsandi.com. Ends
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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