Pensioner Bonds (NS&I)
In the Spring Budget, the Chancellor announced that National Savings and Investments (NS&I) will launch 2 fixed-rate, market-leading savings bonds for people over 65 (Pensioner Bonds) available January 2015 (exact date to be announced). They will pay rates of 2.8%pa gross on a one year bond and 4.0%pa gross on a three year bond (investment limit of £10,000 per product). The bonds will be taxed in line with all other savings income. Given the interest rates on offer are considerably higher than anything else available in the savings market, demand is expected to be high and they could effectively ‘sell out’ within weeks. NS&I accounts have always been popular, possibly because of the unique Treasury guarantee. But where the rates on offer are attractive, NS&I has found itself swamped as happened recently with the NS&I Index-linked Savings Certificates. We therefore suggest that if you are over 65 and wish to invest some of your cash savings in either of the Pensioner Bonds, you should sign up to the NS&I email alerts via the web link http://www.nsandi.com/chancellor-announces-plans-nsi-2014-budget or check the NS&I website regularly.
Obviously we are happy to discuss your savings options with you in more detail, just call the office on 01603 309020.