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“Pensioner Bonds” now launched

January, 2015 pig

A new bond Chancellor George Osborne announced at the last Budget back in March 2014 has now been launched, the bond is exclusively for the over-65s with a guaranteed high interest rate, far higher than rates currently available on the market.

The “pensioner bonds”, issued by National Savings and Investments, has launched with an investment limit of £10,000 each, they are only available for those aged 65+ with a guaranteed 4% gross AER for a fixed term of 3 years, 2.8% for a one-year bond.

The bonds are available to buy through National Savings and Investment, but are limited to £10,ooo per bond.

 

Money Savings Expert Martin Lewis advised you can take out one of each bond limited to £10,000 per bond, but recommended if you only take out one you should take out the 3 year bond as you lose only 90 days interest if you do need to withdraw early. He also recommended if you are looking to buy, you should do it now as there will be only £10bn worth of new bonds issued to buy, which he believes will sell out in 6 – 8 weeks.

The government said the new bonds were a way of helping those who have seen the value their savings “eroded by the low interest rates that have been an absolutely necessary part of this government’s economic plan”.

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