NS&I blocks loyal savers from accessing their own cash...

[dutchman]

Fixed-rate bondholders could previously access their cash for a fee



Tens of thousands of National Savings & Investments customers could see their cash locked away for years with no option to withdraw.

NS&I fixed-rate bondholders could previously withdraw their cash at any time but with a penalty of 90 days’ interest. However, savings that are not moved before these old bonds mature are being automatically deposited into a newer 2019 issue that removes this option.

As a result, savers who had not noticed the change in conditions will find their money locked away for up to three years.

James Daley of Fairer Finance, a consumer group, said: “It is never OK to automatically roll people out of one fixed-term savings product into another, without their explicit consent.

“This is certainly not the behaviour that you’d expect from NS&I, which should be leading the way in good practice.”

About 736,000 customers hold a collective £39.8bn in NS&I Income and Growth Bonds, according to its latest accounts.

NS&I said that customers were given at least 30 days’ notice before their terms ended and that savers had a 30-day “cooling off” period from the date that their term started, during which time they could cancel their investment and cash in their holding.

It added that customers who needed urgent access to their funds due to exceptional circumstances after this period would be looked at on a case-by-case basis.

Mr Daley added that customers who had been automatically rolled over to a new issue without realising the change in conditions could potentially raise a complaint with the Financial Ombudsman Service.