Pensioner Bonds Guide

2010

Another catch is revealed but not the rates as yet!

http://www.telegraph.co.uk/finance/personalfinance/savings/11288999/Revealed-the-tax-sting-on-the-Governments-pensioner-bonds.html

Revealed: the tax sting on the Government's 'pensioner bonds'

Bills of up to £80 will arise because new pensioner bonds will pay interest at the end of the term - yet tax on that interest will be due annually
Savers could face tax bills on money they have not received if they invest in the Government's new "pensioner bonds" that promise generous interest rates, The Telegraph can disclose.

Archi_Bald

2010 wrote: »

Savers could face tax bills on money they have not received[/SIZE]

Of course they have received the money. It sits in their savings account and earns further interest.

Also, it's only higher rate tax payers who would have to declare interest on money which is still locked up. Hardly anything that would break their bank, and no different to most other fixed term savings accounts. A non-story.

judexx

It's 4.00pm on a Friday - who's going to announce these rates - the cleaners ?? :rotfl:

Archi_Bald

They have been announced. 2.8 and 4%.
http://www.telegraph.co.uk/finance/personalfinance/savings/11289867/Pensioner-Bonds-to-pay-4pc-and-2.8pc-NSandI-confirms.html

judexx

Archi_Bald wrote: »

They have been announced. 2.8 and 4%.
http://www.telegraph.co.uk/finance/personalfinance/savings/11289867/Pensioner-Bonds-to-pay-4pc-and-2.8pc-NSandI-confirms.html

Should have guessed to look in the Telegraph, rather than on NS&I's site, where it's still not showing

I-LOV-MONEY

Archi_Bald wrote: »

Of course they have received the money. It sits in their savings account and earns further interest.
.

But is it actually 'paid out' or does it get calculated at the end of the three year term?

Rollinghome

I-LOV-MONEY wrote: »

But is it actually 'paid out' or does it get calculated at the end of the three year term?

Interest added to account on each anniversary. So the only difference is that it seems you won't be able to opt to have interest paid away to another account as you can with most fixed rate savings accounts.

I-LOV-MONEY

One other question. I presume you cannot apply (or register) before January?

Rollinghome

I-LOV-MONEY wrote: »

One other question. I presume you cannot apply (or register) before January?

You can't apply or pre-register and NS&I say full details will be announced when they go on sale in January, but you can register with them to be notified by email.

MSE_Helen_S

Rates announced today were as expected, and the updated guide is now on the site.

What we don't yet know is what date in January the bonds will be launched.

We'll update the guide when we know anything further...and I will post in here.

Helen