Ask the Expert: How can I cash in my pensioner bonds?

PUBLISHED: 18:27 14 December 2017 | UPDATED: 19:04 14 December 2017

Carl Lamb, managing director of Almary Green

Carl Lamb, managing director of Almary Green


What are my options when my three-year pensioner bond matures early next year, asks our reader. Carl Lamb of Almary Green explains.

I bought one of the pensioner bonds from National Savings in February 2015. It was of the three-year bonds so is due to mature next year. What happens when it gets to its maturity date, please? How do I get my money? Can I buy another one as soon as this one matures?

Response from Carl Lamb of Almary Green

Pensioner Bonds from NS&I (National Savings & Investments) were a one-off savings opportunity for the over-65s that were available for sale in 2015.

The three-year bonds paid interest at 4% gross, which beats the vast majority of savings accounts out there. 
However, they are no longer on sale so you can’t buy another one. There are other NS&I bonds and accounts you could use but they don’t offer such a good rate of interest.

NS&I will send you a maturity pack within 30 days of the maturity date of your bonds either by post or – if you signed up to be paperless – by email. The pack will explain all your options. You’ll need to either go online or write to NS&I to give your instructions and you must do this at least two days before the bond matures.

There are three options to choose from. 
Firstly, you can reinvest your money in one of NS&I’s standard guaranteed growth bonds for a year. This is the default option and your money will be transferred to one of these if NS&I don’t hear from you. 
Secondly, you can invest your money into a standard guaranteed growth bond for a longer period – two, three or five years. You’ll need to tell NS&I if you want to take out one of these. 
The third option is to cash in your bond. The amount you’ll get will be the total of your initial deposit and all of the interest you’ve received on it. 
The pack will include a form for you to complete to confirm your instructions and your bank details – or you can complete the form online.

You can choose to reinvest just some of the money you currently have in your pensioner bond and cash in the rest, but the minimum you can invest in each term is £500.

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