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 |
|
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.
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.
More on savings:
The best Cash ISAs for the 2015/16 tax year
Where to earn most interest on your cash