NS&I this morning announced that the new “Pensioner Bonds”, which are actually called 65+ Guaranteed Growth Bonds, are available now. The bonds are only available to people over 65 year old.
There are two issues being launched with market-leading rate:
- 1 year term, 2.8% per annum gross interest
- 3 year term, 4% per annum gross interest
£10,000 can be invested in these bonds per person, per issue. Therefore, each person could invest £10,000 in the 1 year term bond and £10,000 in the 3 year term bond. A married couple could invest a total of £40,000 and this can be joint if preferred.
The bonds will be taxed at source at the Basic Rate (20%). Non-taxpayers cannot elect for the interest to be paid gross, so will have to claim the tax back. Remember, the personal allowance for savings will increase to £15,600 from 6th April 2015.
The interest will be accrued and paid at the end of the term, so these bonds do not pay an annual income. There is also a 90 day interest penalty if you take your money out early.
The quickest way to apply is either online at www.nsandi.com/65-guaranteed-growth-bonds or by calling 0500 500 000. On the morning of the launch, the website crashed and the telephone line was not working, but NS&I say keep trying.
Alternatively, you can apply by post. Send a cheque to NS&I, Glasgow G58 1SB.