You are here: Home - Retirement - Retirement planning - News -

Savers must hurry for NS&I pensioner bonds

Written by:
National Savings & Investments is urging savers who intend to take out pensioner bonds to hurry, or lose out on the opportunity.

Savers aged 65+ are currently able to access two government-backed pensioner bonds accounts which pay up to 4 per cent interest – but the deadline for signing up falls on midnight, 15 May.

‘65+ guaranteed growth bonds’ come in one and three year vehicles, paying 2.8 per cent and 4 per cent respectively. As National Savings & Investments is effectively the UK government’s own savings bank, any money invested or saved with the institution is afforded 100 per cent security.

Pensioners can apply online on the NS&I website, or via post/phone, although the body has recommended that savers make their applications online. Up to £20,000 can be placed in the bonds per person; savers can also invest jointly with another party aged 65+, bringing this total to £40,000. There is a minimum investment requirement of £500.

The bonds were offered for purchase in January this year; initially, the bonds were to be withdrawn from sale once £10bn worth had been sold, but George Osborne extended the availability period to May the following month.

Up-to-date sales figures are currently unavailable (the statistics will be released in full when the bonds close), although data up to 12 March (the date on which the original £10bn limit was reached) indicates that 825,000 savers have purchased bonds.

While the bond launch was welcomed by many, they have also been criticised for not offering a regular income to purchasers, and charging savers who cash in early a penalty fee equivalent to 90 days’ interest. The bonds will pay out capital and accumulated compound interest upon maturity.

“65+ bonds close for sale on Friday 15 May,” a spokesperson for NS&I said.

“Customers can buy the bonds online or over the phone up to 23.59pm, and postal applications must be received by this time or they will not be processed.”



Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Brits take tentative steps to protect their finances from a hard Brexit

British citizens living in the UK or abroad expect the economic situation to worsen in the next year due to Br...
Brits take tentative steps to protect their finances from a hard Brexit

Will your pension fund be sufficient if you live to 100?

Workers will need a pension fund of £447,000 if they retire at 65 and live to 100, and require an income equiv...
Will your pension fund be sufficient if you live to 100?

The simple way to save £192 a year on broadband

Broadband customers can save as much as £192 a year by renegotiating their deal or switching provider once the...
The simple way to save £192 a year on broadband

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Read previous post:
Senior Schroders economist comments on the election

As results continue to roll in for one of the most unpredictable UK general elections of all time, it appears...