Posted by admin - January 16, 2015 10:22 am
65+ Guaranteed Growth Bonds
The Government’s new ‘pensioner bonds’, available to investors over 65, went on sale yesterday amid much demand. There are £10 billion-worth of bonds available. One year and 3 year bonds are available and up to £10,000 can be placed in each of these, a maximum of £20,000/person, or £40,000/couple.
These bonds are suitable for savers who:
- want a fixed and guaranteed rate of interest
- can leave their money invested for 1 or 3 years
- have at least £500 to invest
However, these bonds are not for savers who:
- are aged under 65
- want easy access to their money
- need a regular income from their savings
Rates
- 2.8% on the one-year bond
- 4% on the three-year bond
Withdrawal arrangements
Can be cashed in early with a penalty equivalent to 90 days’ interest.
Interest
Interest is paid at maturity on the one year bond, and annually on the three year bond.
Access
You can apply for and cash in bonds online, by phone or by post
The bonds are on sale at the NSandI website.
Do you need further assistance with planning your retirement? Why not talk to a member of your local MFW office who will be pleased to help.
