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Launch of National Savings & Investments Pensioner Bonds

See below  for details of the new Pensioner Bonds which NS&I launched today.

National Savings & Investments have launched new Bonds for investors aged 65 and over. These are the Bonds announced by the Chancellor in his March 2014 Budget statement.  Click here for a pdf of the brochure and full details of the Bonds can be obtained from the following website:


The new Bonds at a glance

What are the Bonds?

  • Lump sum investments providing capital growth
  • Choice of terms – 1-year and 3-year
  • Designed to be held for whole term, but can be cashed in early with a penalty equivalent to 90 days’ interest

How do individuals apply?

  • Applications can be made online, by phone, or by post and full details of how to apply are detailed in brochure here.
  • Available for a limited period

Who can invest?

  • Anyone aged 65 or over
  • Invest by yourself or jointly with one other person aged 65 or over

How much can they invest?

  • Minimum for each investment £500
  • Maximum per person per Issue of each term £10,000 (so a couple aged over 65 could invest a maximum of £40,000, if they both invest in both terms)

What about interest?

  • 1-year Bond 2.80% gross/AER*
  • 3-year Bond 4.00% gross/AER*
  • Fixed rates, guaranteed for the whole term
  • Interest added on each anniversary

The tax position

  • Interest taxable and paid net (with basic rate tax taken off)
  • Higher and additional rate taxpayers will need to declare their interest to HM Revenue & Customs (HMRC) and pay the extra tax due
  • Non taxpayers, and those eligible to have any of their interest taxed at the new 0% rate (which starts from April 2015), can claim back the tax from HMRC

*Gross is the taxable rate of interest before the deduction of UK Income Tax. AER (Annual Equivalent Rate) is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and AER are the same.

Further information can be obtained from the following website: