The Government’s “pensioner bonds” will pay investors an annual interest rate of 2.8 per cent for the one-year bonds and 4 per cent for three-year bonds, the Treasury has announced.
First promised in the March Budget, the bonds are available through National Savings and Investments and will have a limit of £10,000 per bond per person. The bonds are only available for those aged 65 and over.
There is a £500 minimum investment and bonds can be held jointly.
Chancellor George Osborne says: “A key part of our long-term economic plan is to support savers and boost hardworking peoples’ financial security at all stages of life.
“That’s why the Government is introducing savings bonds for people aged 65 and over, and why we’re confirming today that these bonds will pay the best available interest rates. They will give hundreds of thousands of older savers the certainty and comfort of a good return over the life of their investment.”