'Pensioner Bonds' to remain on sale until May
The Chancellor announces that over-65 savers will have three more months to buy the bonds.
The inflation-beating Government-backed 65+ Guaranteed Growth Bonds, also known as ‘Pensioner Bonds’, are to remain on sale for a further three months, Chancellor George Osborne has announced.
The deadline for applications will be moved to May, Mr Osborne told the BBC’s Andrew Marr. He called the bonds “the most successful saving product this country had ever seen”.
An estimated 600,000 people over 65 have bought bonds to date. The one-year version pays 2.8% interest, with the three-year version paying 4%.
There were £10 billion-worth of bonds being made available initially, but Mr Osborne says he expects that figure to now be extended to £15 billion and the deadline to be extended until after the General Election in May.
“This Government backs savers and supports people who do the right thing,” Mr Osborne said.
Over £1 billion of bonds were sold in the first two days after they went on sale, with provider NS&I struggling to cope with the demand. Some people had to be refunded after being charged twice as NS&I’s online systems crashed.
The bonds can now be applied for online at the NS&I website, or by phone (free from a landline) on 0500 500 000 or by post.
NS&I says its phone lines are still very busy. If you can, it's better to call later in the day.
If you're looking for a decent return on your savings, take a look at Where to earn most interest on your cash.
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Where to earn most interest on your cash
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