Pensioner Bonds Interest Rates Announced

The interest rate on National Savings and Investments pensioner bonds has been announced by the government.

The 1-year bond will pay an annual interest rate of 2.8% and the 3-year bond will pay 4%.

Important information:

• people aged 65 and over can invest in the bonds
• the minimum investment is £500
• the maximum investment is £10,000 per bond.

The bonds will go on sale in January 2015 and will be available for a limited period.

Chancellor George Osborne said the bonds will, “give hundreds of thousands of older savers the certainty and comfort of a good return over the life of their investment”.