Time running out to get 65+ 'Pensioner Bonds'


Updated on 06 May 2015 | 0 Comments

Bonds on sale until midnight on 15th May.

Time is running out for older savers to get their hands on the market-leading 65+ Guaranteed Growth Bonds.

The savings deals, also known as Pensioner Bonds, will be on sale from NS&I until midnight on 15th May.

There are two bonds on offer: a one-year bond paying 2.80% and a three-year bond paying 4%. You can save anything from £500 to £10,000, and you can have one of each. As the name suggests, you can only get the bonds if you are aged 65 or older.

How the bonds compare

To emphasise just how much better they are than the bonds on offer to the rest of the nation, here’s how the one-year bond compares to its rivals.

Bond

AER

Minimum deposit

NS&I 65+ Guaranteed Growth Bond

2.80%

£500

Al Rayan Bank 18-month Fixed Term Deposit

2.02%*

£1,000

Al Rayan Bank 12-month Fixed Term Deposit

1.90%*

£1,000

FirstSave One Year Fixed Rate Bond

1.90%

£1,000

*Anticipated profit rate

And here is how the three-year bond shapes up.

Bond

AER

Minimum deposit

NS&I 65+ Guaranteed Growth Bond

4%

£500

AgriBank Fixed Rate Savings Account*

2.70%*

£10,000

Paragon Bank Three Year Fixed Rate

2.50%

£1,000

*Member of Malta Deposit Protection Scheme, so only first £50,000 you save is protected

[SPOTLIGHT]As you can see, if you qualify for a Pensioner Bond and can afford to lock your money up, you’re far better off with one than with a more mainstream savings bond.

Compare savings and ISA rates

How can I get a Pensioner Bond?

Pensioner Bonds are available directly from NS&I online, over the phone or by post.

If you want to apply by phone, then you can call 0500 500 000 for free. If you’re on a mobile or outside the UK, call +44 1253 832007.

Alternatively, you can download a form, fill it out and send it to:

65+ Guaranteed Growth Bonds 
National Savings and Investments 
Glasgow 
G58 1AD

NS&I has urged those planning to apply by post to get their forms sent in as soon as possible.

Will I have to pay tax?

Tax will be deducted at the basic rate of 20%, unless you are a higher rate or additional rate taxpayer in which case you’ll have to pay a further 20% or 25% respectively.

If you are a non-taxpayer or you have part of your interest taxed at 0% then you will have to claim the money back from HMRC.

Compare savings and ISA rates

More on savings:

Pensioner Bonds explained

The best Cash ISAs for the 2015/16 tax year

Where to earn most interest on your cash

 

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