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10 Things we know about ‘Pensioner Bonds’ and 2 things we don’t!

Written by John J Bloomfield

Pensioners on Mobility Scooters

There seems to be much interest in 'Pensioner Bonds' as announced in George Osborne's Budget speech in March 2014 – since then some detail has been released but we still don't have the full picture. So this is what we know so far.

  1. Firstly the name, they won't be called 'pensioner bonds' they will be called 'Plus 65 Bond'
  2. They will become available from January 2015
  3. They will only be available to those aged 65 and over.
  4. If you're under 65 you can have a joint bond with someone who is over 65
  5. There will be a 1 year and a 3-year option.
  6. The minimum investment will be £500
  7. The maximum investment will be £10,000 per bond and an individual can only have one of each so a maximum investment of £20,000
  8. They will NOT be tax-free.
  9. Interest will be paid annually not monthly.
  10. 1They will be sold exclusively through NS&I

 

These are the things we know what we don't know is the interest rate that will be offered through it is strongly rumoured to be annually 4% Gross (3.2% Net) for the 3-year bond and 2.8% Gross (2.24% Net) for the 1-year version. Another big unknown is how quickly they will 'sell-out' it's understood that National Savings & Investments will have a limit on how many bonds they can issue.
When I know the rates I will publish them on this blog.