The popularity of the new pensioner bonds that are paying an annual interest of up to 4% has been so high since they have been on sale that they have caused the National Savings and Investment website to crash temporarily.
Within the first hour of the NS&I offering a government-backed lump sum investment to people aged 65 and over the website began to have problems and started to crash for some customers.
It is thought that the market leading rates and many years of being offered accounts with very low returns have led to people jumping on the chance to make some money.
Customers are being excited by the market leading rates they are offering. A 1 year bond pays an annual interest rate of 2.8% before tax, and a 3 year bond will pay 4% before tax, and every anniversary after the investment will receive interest. But people trying to invest have been getting frustrated with NS&I’s service after using the website and phone lines and still not getting through.
Some were fondly remembering the good old days before the internet, as technology repeatedly let them down. Charles Fox who had found that the website was temporarily unavailable and could not get through by phone told the BBC, “you simply went to the local Post Office and were supplied with your Investment Bond Certificate over the counter.”
A spokesperson for NS&I told the press, “We are currently experiencing high demand for our new 65+ Guaranteed Growth Bonds - customers may have to wait longer than normal to contact us. We’re sorry for the inconvenience this has caused and are grateful to our customers for their patience. Our call centres are open 24/7,”
Jane Platt, the chief executive of NS&I told the pension bond customers that they “expect these bonds to be on sale for months not weeks and would like to reassure savers that there is no need to rush to invest.”
Sylvia Waycot, the editor of Moneyfacts, a financial information service, thinks a little differently and actually predicted the bonds would sell out in days.
Other investment commentators such as Danny Cox, of investment firm Hargreaves Lansdown, have stated they would be highly surprised if the £10 billion allocation lasts until April.
Though the growth is not massive in comparison to other investments the draw for the investment bonds has been highly sought after by the over 65s. Here at Property Moose we are delighted that those over 65 with capital to invest are looking into a more modern and possibly more lucrative type of investment.
Property crowdfunding is a relatively new idea, though pool funded investment into property has been around for many years and has traditionally been seen as a reputable investment by the public.
Like the growth bonds, property crowdfunding is hassle free. Once you’ve signed up and invested in the properties you wish to invest in you won’t have to take any further action and can monitor the value of your portfolio weekly. With Property Moose you can start with lower investments of £10 which will allow investors to create a diverse portfolio of investments.
The NS&I offer a guaranteed growth bond, which Property Moose cannot, there are risks in both, but with a diverse portfolio you are reducing the risks involved in individual investments, something were very big advocates of at Property Moose. On the Property Moose website their are several carefully curated properties to invest in, which allows you to organise a diverse portfolio of investment simply & easily.
If you miss your chance on the 65+ Guaranteed Growth Bonds or are looking for something to invest alongside your bonds, then a Property Moose crowdfunding investment would be well worth looking into.
