National Savings and Investments income payments delayed

It has been revealed that around 8000 investors in National Savings and Investments (NS&I) income bonds have not received their January payment due to "technical issues". Those affected acquired their income bonds between 24 November 2009 and 28 November 2009 and were due to receive their latest income payment on 5 January. While the government has not been forthcoming with regards to reasons for the delay, the payments will be made "as soon as possible".

Customers who have been affected by the technical issues will have received a letter from the NS&I making them aware of the situation and the fact that the February payment should be paid on the correct date. There will be a small compensation payment accompanying the January income deposit when this is finally made. However, this will be of little compensation to those who depend on income from their NS&I income bonds to cover their monthly outgoings.

While there is no danger of financial problems at NS&I it is just the timing of the technical issues which will cause problems in the short term. This is a financial institution which is backed by the UK government and has proved very popular amongst those in retirement who are perhaps looking for more security for their investments.