NS&I – Beware Government bearing gift!
At a time when financial institutions are finally showing outward signs of being embarrassed – but not doing anything – about defaulting bond holders into the reinvestment of their choice if they don’t make or make a reinvestment decision too late here is NS&I standing pat on its rules. In the private sector my understanding is there is a 14 day extension after maturity date – the cooling off period. Not for the Government they give two weeks and if you miss the deadline you can have your money as long as you give them 90 days interest.

Reason for above is I received MSE email today drawing attention to NS&I 3.95% AER for 1 year.

Fortunately I have a sense of humour. Having spoken with senior staff in two of the largest savings banks, who to my surprise agreed on record – calls are taped – that the above default process is unacceptable and the “Government bank” saying on a related matter that it was done because “we don’t like you taking your money away” – I kid you not – I was going to write to an acquaintance who could pass comments on to the appropriate channel. So that’s gone in the bin.

The moral of the story is if you’re going to miss the deadline make sure that’s what you are – dead! No penalty you see.