Why is NS&I turning away some older savers from new 4% bond?

National Savings and Investments (NS&I) help-line staff have wrongly told customers that they can only open its new 4 per cent fixed-rate bond if they have access to the internet.

The 12-month fixed rate was launched last Wednesday with a top rate of 4 per cent to much fanfare. However, the NS&I website claims that the product is ‘designed to be invested in online’.

It also says the bond is not suitable for customers who ‘prefer to manage savings by post’.

When Cecile Hill, 86, called NS&I customer services last Friday in order to move money from her existing Direct Saver account to the new Guaranteed Growth Bond, she was told she couldn’t have the account because she didn’t have access to the internet.

Cecile, from London, says: ‘They were adamant that I couldn’t open a new account on the phone. I’m elderly and live alone, I don’t use the internet at all.

‘I gathered from the staff member that I wasn’t the first person to be told this.

‘There are many people who don’t have the internet and we’re being told it’s hard luck.’

When challenged about Cecile’s case, NS&I admitted some of its call centre staff had been given incorrect guidance.

A spokesman confirmed staff should allow customers without access to the internet to open accounts over the phone.

The spokesman says: ‘We would like to apologise to any customers who have called our call centre and have not received the level of service that they should rightfully expect from our team.

‘The quickest and easiest way to apply for the new Issues of Guaranteed Growth Bonds and Guaranteed Income Bonds is online via our website, but we appreciate that not all customers have online access. 

‘We are committed to ensuring that all of our customers, including those who do not have access to online services, are able to invest in our products.’

Dennis Reed, of charity Silver Voices, criticised the blunder. He says NS&I should be setting an example to other investment banks by ensuring there are always non-digital options for securing the best rates.

He says: ‘This specific case is a display of age discrimination, and it is made worse by the fact that a government agency is responsible NS&I is very popular with older investors, many of whom don’t have internet access, or don’t want to switch to digital banking.’

NS&I says it has now contacted Cecile to open her account and move her savings over.

On Wednesday, Thursday and Friday last week, NS&I’s helplines quoted waiting times of up to 45 minutes. Money Mail has been campaigning — as part of its Pick Up or Pay Up — for big businesses to be fined if they do not answer their phones within ten minutes.

There is no dedicated option to open the new bonds on the phone, meaning potential customers must go through to its general enquiries line.

An NS&I spokesman said: ‘We are sorry that some customers may have waited longer than usual to speak to a member of our team this week. 

‘We are experiencing a much higher number of calls than usual and thank our customers for bearing with us while our team works hard to help as many people as possible.’

It says queries about the new bonds, switching from other products into the bonds and Premium Prize draw had created longer wait times than usual.

NS&I says that where a product is advertised as being ‘online-only,’ NS&I will speak to each customer on a case-by-case basis.

It says a staff member will then guide them through one of three options — the online process during a phone call, an account will be opened and payment taken by phone, or they will be sent a switching form via the post.

l.boyce@dailymail.co.uk