Pensioner Bond

McKneff

Im a pensioner, have a private pension and some savings. I am a non tax payer.
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I haven't taken a lot of notice of the budget but saw something about a 'Pensioner Bond' re savings.


What are the details please, if anyone can help.

Ifts

Budget 2014: Osborne announces NS&I pensioner bonds -

http://citywire.co.uk/new-model-adviser/budget-2014-osborne-announces-nsandi-pensioner-bonds/a741491

talexuser

They are NS&I so the big advantage is safety. However you have to wait till 2015, can only invest £10000 max and they will be withdrawn when 10 billion has been reached so get in quick. The eye grabbing 4% is for a 3 year fix, for basic tax that is £320 a year interest. The current best buy 3 year fix is around 2.7%, so for basic tax the pensioner bond gives around £104 a year extra. However a 3 year fix by 2015 might not be such a good deal IF by then inflation and interest rates take off during that period.

alanq

The budget report says that there will be a limit of £10,000 per bond which seems to indicate that it will be possible to save £10,000 in both 1-year and 3-year versions.

MSE opened a thread on the Over 50s board regarding these bonds.
https://forums.moneysavingexpert.com/discussion/4925878