The new bonds for people aged 65 and over will offer market-leading rates and support people who rely on their savings in retirement. Two bonds are being launched:
· A one year bond will offer returns of 2.8 per cent gross/AER interest,
· A three year bond will pay 4 per cent gross/AER interest.
£10 billion has been made available to allow these bonds to be issued – this should ensure these bonds, which are on the market now until May 15th, gives those pensioners who wish to take advantage of the rates plenty of time to do so.
Kevin said:
“A key part of our long-term economic plan is to support savers and boost hard-working peoples’ financial security at all stages of life.
“That’s why we’ve introduced government-backed savings bonds for people aged 65 and over that pay the best interest rates in the market. They have already been a huge success and because this is the biggest ever retail bond offer, and I welcome the extension of their availability.
“This is great news for pensioners in Thirsk & Malton. It is time savers were rewarded and these bonds do that by giving older savers the certainty and comfort of a good return over the life of their investment.”