We are quickly approaching the launch date for the new Pensioners Bonds from NS&I. These will be exclusively available to investors aged 65 and over. They will be available over terms of 1 year or 3 years and while they are designed to be held for the whole term, they can be cashed in early with 90 days loss of interest.
The interest rates have not yet been announced, but they are likely to be very competitive indeed and for this reason the Bonds could prove to be very popular. An announcement of the rates which will apply is expected in the Chancellor’s Autumn Statement on 3rd December 2014.
You can invest between £500 and a maximum of £10,000 per person. The fixed rates are guaranteed for the whole term and interest is added on each anniversary.
The exact launch date in January 2015 has not yet been announced, but when the Bonds are launched, there could be a rush of investors applying depending on just how good the rates are. This could lead to the Bonds being withdrawn from sale. NS&I has a Net Financing Target of £13 Billion for 2014-15 and they expect much of this to be taken up by the new Bonds.
Further information is available on the NS&I website at: http://www.nsandi.com/savings-65plus