Savers up in arms over bond rate cut
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.HUNDREDS of people are still waiting to find out whether their applications for the National Savings First Option Bond arrived in time for them to receive the original high rate of interest offered, writes Maria Scott.
The rate was cut at noon on Tuesday from 7.75 per cent net to 7.25 per cent, and investors were given less than 24 hours' notice. The rate on investments of pounds 20,000 plus comes down from 8.05 per cent to 7.55 per cent net.
The original rates were available only for a fortnight, and the sudden switch angered investors.
One who applied for pounds 20,000 of bonds and missed the noon Tuesday deadline accused the Government and National Savings of 'sharp practice' in advertising the bond last weekend and then announcing the rate cut on Tuesday.
'This is like a supermarket changing its prices after I take something off the shelf and before I get to the checkout.'
When First Option's rate was cut, National Savings undertook to apply the original rate to applications received in its Glasgow office by noon on Tuesday. Those who did not make it on time would be contacted by telephone or letter and offered the lower rate.
A spokesman for National Savings said more than half those contacted so far had decided to buy the bond at the lower rate.
Those who have to be contacted by post will have their cheques returned, with an invitation to re-apply at the lower rate.
Peter Richards, of Hastings, posted his application for pounds 4,000 of First Option Bonds on Monday but missed the deadline. He was furious to discover that Freepost is like second class mail.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments