The 1 year bonds will pay an annual interest rate of 2.8%, and the 3 year bonds will pay 4%. These rates are significantly higher than any others currently offered in the market.
A key part of the government’s long term economic plan is to support savers at all stages of their lives. That is why the government announced at Budget 2014 that National Savings and Investments (NS&I) will launch two fixed-rate, market-leading savings bonds, which will be available in January 2015.
These bonds, the rates of which are confirmed today, will provide certainty and a good return for those who have saved all their lives and now rely on their savings in retirement.
With an investment limit of £10,000 per bond per person, the government expects that the 65 plus bonds will help an estimated 1 million pensioners. The bonds will be available directly from NS&I by post, phone or online.
During his visit the Chancellor met with pensioners to discuss the benefits of the 65 plus bonds.
The visit formed part of the Chancellor’s tour around Britain aimed at highlighting the policies announced in Autumn Statement 2014.
Chancellor of the Exchequer, George Osborne said:
A key part of our long term economic plan is to support savers and boost hardworking peoples’ financial security at all stages of life.
That’s why the government is introducing savings bonds for people aged 65 and over, and why we’re confirming today that these bonds will pay the best available interest rates. They will give hundreds of thousands of older savers the certainty and comfort of a good return over the life of their investment.
Investors can hold bonds jointly, but this will still count towards their individual limits – i.e. a couple could hold £40,000 jointly.
There is a minimum investment of £500 per bond.
Image by 401(K) 2012 on Flickr. Used under creative commons.