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

National Savings and Investments (NS&I) helpline employees have falsely told clients that they can only open the new 4 percent fixed-rate bond if they have internet access.

The 12-month fixed rate was launched last Wednesday with a top rate of 4 percent to much fanfare. However, the NS&I website claims the product is “designed for online investing.”

It also says the bond is not suitable for customers who “prefer to manage savings by mail.”

When Cecile Hill, 86, called NS&I customer service last Friday to transfer money from her existing Direct Saver account to the new Guaranteed Growth Bond, she was told she couldn’t get the bill 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 am elderly and live alone, I do not use the internet at all.

‘I understood from the employee that I was not the first to hear this.

“There are a lot of people who don’t have internet and we’re told it’s bad luck.”

When asked about Cecile’s case, NS&I admitted that some call center employees had been given incorrect instructions.

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

The spokesperson said: “We would like to apologize to all customers who have called our call center and have not received the level of service they rightly expect from our team.

‘The quickest and easiest way to apply for the new Guaranteed Growth Bonds and Guaranteed Income Bonds issues is online through our website, but we understand that not all clients have online access.

“We do everything we can to ensure that all our customers, including those who do not have access to online services, can invest in our products.”

Dennis Reed, of the Silver Voices charity, criticized the blunder. He says NS&I should set an example for other investment banks by making sure there are always non-digital options to get the best rates.

He says: “This particular case is an expression of age discrimination, and it is exacerbated by the fact that a government agency is responsible. NS&I is very popular with older investors, many of whom do not have internet access or do not want to switch to digital banking.”

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

Last Wednesday, Thursday and Friday, the NS&I helplines reported waiting times of up to 45 minutes. Money Mail is campaigning – as part of Pick Up or Pay Up – to fine big companies if they don’t answer their phone within ten minutes.

There is no special option to open the new bonds by telephone, which means that potential clients must proceed to the general information line.

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

“We have a lot more calls than usual and thank our customers for their patience as our team works hard to help as many people as possible.”

It says that questions about the new bonds, switching from other products to the bonds, and the drawing of Premium prizes have caused longer wait times than usual.

NS&I says that when a product is advertised as “Online Only,” NS&I will speak to each customer on a case-by-case basis.

It says that a member of staff will then walk them through one of three options: the online process over a phone call, an account is opened and payment is made over the phone, or they get a transfer form in the mail.

l.boyce@dailymail.co.uk