Pensioner Bonds are Here

Youth v. Experience

Since 1 January 2015 those aged over 65 have been able to invest in pensioner bonds, which offer an attractive fixed rate of interest for either a one or three year period.
Pensioner bonds were first introduced at the March 2015 Budget, where George Osborne announced that National Savings and Investments (NS&I) would launch a new savings product for investors aged over 65. These savings accounts offer a significant higher rate of interest than those available in standard savings accounts – on average, rates are 2.8% on the one-year bond and 4% on the three-year bond. To invest, savers need to make a minimum investment of £500 and a maximum of £10,000. The interest payable is then calculated on a daily basis and paid on the anniversary of the investment. In regards to tax, only the basic rate is deducted when interest is added to the bond. Up to £10 billion of bonds are being made available, although with £1 billion being sold in the first two days it is difficult to predict how much longer they will be around for, especially with NS&I not releasing any up-to-date statistics. Applications can be done online, by phone or via an application form. Go to the National Savings and Investments website ( to find out more.