New 65+ Bonds now on sale

The new 65+ Bonds, announced by the Chancellor of the Exchequer in the March 2014 Budget, have been launched and are now on sale at nsandi.com.

As confirmed on 12th December 2014 by the Chancellor, the Bonds – which are formally known as 65+ Guaranteed Growth Bonds - will offer 2.8% gross/AER interest over a one-year term and 4% gross/AER interest over a three-year term.

The issue of these Bonds has been made at the Chancellor’s request, and has been designed to support older savers who rely on their savings during their retirement.

Up to £10 billion has been made available to cover both the one and three year terms, enabling sales of the Bonds to continue for an expected period of months rather than weeks.

Key features

Key features of the Bonds are as follows:

Lump sum investments providing capital growth

Choice of terms: 1-year and 3-year

Investment limits apply: minimum of £500 and maximum of £10,000, per person per  term

Designed to be held for the whole term, but can be cashed in early with a penalty equivalent to 90 days’ interest on the amount cashed in

Investments can be made individually or jointly with one other person aged 65 or over

Fixed rates are guaranteed for the whole term, with interest added on each anniversary

Interest is taxable and paid  net (with basic rate Income Tax deducted)

Chancellor of the Exchequer, George Osborne said: “A key part of our long term economic plan is to support savers and boost hardworking people’s financial security at all stages of life.

“That’s why I am delighted to announce that the government’s new 65 plus bonds are now on sale with the best interest rates in the market. These bonds will give hundreds of thousands of older savers the certainty and comfort of a good return over the life of their investment.”

Jane Platt, Chief Executive, NS&I, said: “We’re really pleased to be starting the New Year by offering the 65+ Bonds to support older savers.

“We expect these Bonds to be on sale for months not weeks and would like to reassure savers that there is no need to rush to invest.  We would also encourage savers to apply online. This should be the quickest and easiest way to invest and will provide immediate assurance that an application has been received.”

Any savers that are interested and would like to find out more should visit: nsandi.com.