The government’s savings bank, National Savings and Investments, has warned any savers aged 65 and over to allow plenty of time for their applications for pensioner bonds to travel by post.
On the pensioner bond scheme, savers are entitled to two government-back accounts that pay out at roughly 4% interest.
These arrangements are titled 65+ guaranteed growth bonds and they come in two forms. The first type of account on offer is a three year arrangement that pays at 4% interest, the second is a one year deal that pays out at 2.8% interest.
The interest rates being offered for these accounts are very competitive. Savers also have the added peace of mind that comes with knowing that the government has backed all their savings – making them completely secure.
Whilst there are some concerns about the length of time that a postal application may take to reach its destination, the NS&I are urging pensioners to apply over the phone or online. The deadline is at midnight on May 15.
Each user can deposit £10,000 per person into a maximum of two bonds, or they can invest twice the amount if they choose to save as a couple.
A spokesman for the NS&I stated:
ì65+ bonds close for sale on Friday 15 May. Customers can buy the bonds online or over the phone up to 23.59pm, and postal applications must be received by this time or they will not be processed.î
This initiative was first rolled out in January and was initially going to be closed once the level of investment had reached £10bn. In February, George Osbourne stated that it would continue for around a week after the 2015 General Election.
One of the downsides to these accounts is that savers don’t reap immediate rewards, they must wait until each deal has reached maturity before they can receive a payout. If any account is closed early then there will be a fine of 90 days worth of interest.
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