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65+ Guaranteed Growth Bonds

65+ Bonds
What you need to know

Information for existing customers

Important update about giving instructions for 3-year 65+ Bonds

What you need to decide

Do you have a 3-year 65+ Guaranteed Growth Bond coming up to the end of its term? You’ll need to decide what you want to do next.

We’ll write to you around 30 days before your Bond matures to explain your options in detail. You don’t need to do anything until you receive our pack.

Here’s a quick summary of what you can do at the end of the 3-year term:

Option 1: reinvest into our standard Guaranteed Growth Bond for 3 years

See below for the rate on offer. If you’re happy with this option and the new interest rate, you don’t need to do anything – we’ll arrange your reinvestment automatically. You’ll start earning the new rate when your existing Bond matures.

Option 2: reinvest into our standard Guaranteed Growth Bond for 1, 2 or 5 years

See below for the rates on offer.

Option 3: cash in your Bond

If you cash in all or part of your Bond, we'll pay the money directly into your nominated bank account after your Bond matures.

How do I change which account my withdrawals get paid into?

You can also split your investment by choosing two or more of the options.

If you choose Option 2, Option 3 or a mix of two or more of the options, you'll need to let us know no later than two working days before your Bond matures. Our pack will explain how you can give us your instructions.

Find out more

Download our 'It's time to decide' leaflet above to find out more about your three options and answers to some questions you may have.

Not heard from us?

Call us if you have any questions or you haven't heard from us by 30 days before your Bond matures. And don’t forget to tell us if you change your address or contact details.

Call us

How do I change my address and other details?

Renewing your Bond

Renewing your Bond

Our 65+ Guaranteed Growth Bonds were special issues that are no longer on sale. If you have a maturing 3-year 65+ Bond, you can reinvest into our standard Guaranteed Growth Bond instead. You can reinvest up to the total value of your maturing Bond, including all the interest you earned. Or you can cash in some of your investment and reinvest the balance.

Read our standard Guaranteed Growth Bonds summary box and key features leaflet:

Summary box

Key features leaflet

You can’t add any extra money to your maturing Bond when you reinvest. However our 1-year and 3-year standard Guaranteed Growth Bonds are also on general sale online. So you can apply separately to invest more money, but the rates may differ to those offered when renewing a maturing Bond. For details of how to apply and the rates currently on offer see:

Guaranteed Growth Bonds

Interest rates

These are the rates currently available for reinvesting a mature 3-year 65+ Bond into a standard Guaranteed Growth Bond:

Issue Term Date rate applied from Interest rate
Issue 62 1-year 1 December 2017 1.50% gross/AER
Issue 55 2-year 20 November 2017 1.70% gross/AER
Issue 56 3-year 1 December 2017 2.20% gross/AER
Issue 51 5-year 20 November 2017 2.25% gross/AER

Definitions

AER (Annual Equivalent Rate) 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.

Gross is the taxable rate of interest without the deduction of UK Income Tax.

Managing your Bond

Managing your Bond

If you are registered for our online and phone service, you can log in or call us any time to check the balance or update your details. (You'll already be registered if you applied for your Bond online or by phone.)

You can register for this service by following the link below or by calling us.

Log in/Register

If you are not registered, you need to give us your instructions by post. You can download and print our most popular forms:

Downloads and forms

Shortly after the end of each tax year we’ll send you a statement showing the interest earned and the value of your Bond.

If you want a reminder of the key features of your Bond and the terms and conditions:

Read our 65+ Bonds key features leaflet

  • Interest and tax

    Your Bond is earning a fixed rate of interest, guaranteed for the length of the term you invested in.

    We calculate the interest daily and add it to your Bond on each anniversary of investment, so you get the benefit of compound interest.

    The interest is taxable, but paid without any tax taken off. Basic rate taxpayers now have a tax-free Personal Savings Allowance of £1,000 on the interest earned on their savings (£500 for higher rate taxpayers). The interest you earn on your 65+ Guaranteed Growth Bond counts towards your Personal Savings Allowance, together with any interest you earn from other taxable savings.

    Find out more at:

    nsandi.com/tax-and-savings

  • What happens at the end of a term?

    Around 30 days before your Bond matures, we’ll contact you to let you know what your options are at the time. You don’t need to do anything until you hear from us. If you have more than one Bond, we’ll contact you separately about each one.

    Don’t forget to let us know if you change your address or contact details so we can get in touch.

    How do I change my address and other details?

Cashing in early

Cashing in early

To get the full return from your Bond, you will need to keep your money invested for the whole of your chosen term. You can cash in your Bond at the end of the term with no penalty.

You can also cash in before that, but we will deduct a penalty from the payment equivalent to 90 days’ interest on the amount you cash in.

When you cash in part of your Bond, at least £500 must remain in the Bond to keep it open.

  • How to cash in

    Registered for our online and phone service? Log in or call us at any time with your NS&I number and password to hand.

    Log in

    Call us

    Or complete a cashing in form and send it to us

    How long will it take?

    When you cash in online or by phone, we’ll send your payment within three working days of receiving your instructions.

    When you do this by post, we’ll send your payment within five working days.

Your questions answered

Your questions answered

How is the interest calculated on my 3-year 65+ Guaranteed Growth Bond?

The interest your 3-year 65+ Guaranteed Growth Bond earns each year is calculated using the interest rate set at the start of your term.

However, the way we added the interest to our 65+ Guaranteed Growth Bonds changed on 6 April 2016, as it did for all taxable savings accounts in the UK.

Before 6 April 2016 we deducted UK Income Tax before we added the interest to the Bonds, but since 6 April 2016 we do not deduct UK Income Tax before we add the interest to the Bonds. So if you bought a 3-year 65+ Guaranteed Growth Bond before 6 April 2015, the interest added to your Bond at the end of its first year will be lower (as it was after deducting UK Income Tax) than the interest added to it at the end of its second and third years (as no UK Income Tax was deducted). The maturity value of your Bond will reflect this.

Find out more about tax and savings at:

Tax and Savings

Can I increase my investment at maturity?

You can’t increase your investment when you reinvest your maturing 65+ Bond. However, as our standard Guaranteed Growth Bonds are also on general sale you can apply separately to invest more money in them.

Our Guaranteed Growth Bonds

Can I switch money from my maturing 65+ Guaranteed Growth Bond into another NS&I account or investment?

Yes, you can switch all or some of your maturing 65+ Bond into another NS&I account or investment by post.

How to switch at maturity

How do I give you new bank account details for my maturing 65+ Guaranteed Growth Bond?

If you are registered for our online and phone service, you can do this online or by calling us. You’ll need your NS&I number and password to hand.

How to update your bank details online

If you are not registered for our online and phone service, you can download a change of nominated bank account form or call us and we’ll send you one. Then complete it and return it with your completed maturity form for your 65+ Bond.

We’ll need to receive your updated bank account details and maturity instructions no later than two working days before your 65+ Bond matures.

Change of nominated bank account form