In January 2015, the NS&I are launching a new Bond for investors aged 65 and over. First announced during the Chancellor's Spring Budget, the eagerly awaited 'Pensioner Bond' is expected to pay nearly double the rate on offer from banks and building societies for either a 1-year and 3-year term. The exact rate available will be announced during the Autumn Statement.
Many pensioners have seen their incomes fall as a consequence of the low interest rates; therefore, the new bond from the NS&I will be an attractive savings vehicle for those in and approaching retirement. However, the 'Pensioner Bond' is not expected to be on sale for long as the NS&I has limited itself to taking only £10 billion into the accounts. If savers use the maximum £10,000 investment per bond, only one million people will be able to take advantage, so savers will have to act fast to secure the market leading rates.
Full details of the Bonds will be available when they go on sale in January, but to stay on top of any developments, individuals can sign up to the NS&I email alerts here.