The chancellor today announced that from January 2015 National Savings and Investments will offer a ‘pensioner bond‘ that will pay a market leading rate of interest to savers over the age of 65.
While the exact interest rates offered will be detailed nearer the time, the government has given an indicative rate of 2.8% on a 1 year bond and 4% on a 3 year bond.
These new bonds will prove very attractive to savers who wish to take an income from their deposit based funds as well as those looking for a safe home for a cash ’emergency fund’.
Assuming that these proposed interest rates keep up with the increasing base rate, they will be very attractive indeed.
