At last a decent interest rate for the older saver
National Savings and Investments (NS&I) have today launched the much awaited new issues of the 65+ Guaranteed Growth Bonds. There are two issues; a one year and three year fixed term deposits.
Investment terms
The investment is restricted to those individuals over the age of 65 at the time of application or jointly when both parties are over the age of 65. The maximum deposit per person per issue is £10,000. Investment can be made online by phone or by post.
Interest
The interest accumulates and is paid at the end of the term. There is no ‘monthly income’ option. The 1 year bond is paying 2.80% gross/AER. The 3 year bond is paying 4.0% gross per annum/AER.
Access
The account can be closed early but will suffer 90 days loss of interest
Taxation
Interest is paid net of basic rate tax (20%). Nil taxpayers will have to reclaim the tax paid as there is no provision to have the interest paid gross. Higher rate taxpayers will have to pay additional tax through their Self-Assessment return
Protection
The Financial Services Compensation scheme does not apply to NS&I products however these deposits are 100% guaranteed by the UK Treasury. There are no cancellation rights to this investment so please ensure that it is suitable for you before you invest
This is a limited tranche of investment and NS&I will withdraw this once they have received the £10bn of monies.
If you feel that this may be of use to you or a family member, more information is available direct from NS&I , either online at http://www.nsandi.com/65-guaranteed-growth-bonds or by phone on 0500 500 000.