New 65+ National Savings Bonds
New 65+ Bonds – interest rates confirmed
We have some news about the National Savings Bonds for investors aged 65 and over, due to launch in January 2015.
The Chancellor has announced that the confirmed interest rates will be:
1-year Bond 2.80% gross/AER*
3-year Bond 4.00% gross/AER*
There will be a choice of terms available, 1-year and 3-year, with a minimum of £500 for each investment and a maximum of £10,000 per person per term. So that’s a total of £20,000 you can invest. Applications to invest in the Bonds can be made online, by phone or by post once they are on sale during January 2015.
*Gross is the taxable rate of interest before the deduction of UK Income Tax. AER (Annual Equivalent Rate) is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and AER are the same.