It was announced this weekend that the Pensioner Bond scheme would be extended, with those aged 65+ now able to apply until 15 May. The move means the overall issue is expected to be in the region of £15bn, up from the previous limit of £10bn, meaning even more pensioners could benefit from these market-leading bonds.
The Government-backed bonds have attracted "unprecedented demand", said the Treasury, with the latest update revealing that £7.5bn has already been sold, despite the bonds being on the market for less than four weeks. Really, it's no wonder that they're so popular – offering truly market-leading rates of 2.8% for the one-year bond and 4% for the three-year version, nothing else on the market comes close.
"Our 65 plus Pensioner Bonds have been a huge success, and are already helping hundreds of thousands of older savers," said Chancellor George Osborne. "I want to ensure as many older savers as possible can take advantage of these market-leading bonds, which is why I'm confirming today that potential savers will have months to invest in these hugely popular products, if they wish."
Get your skates on!
The extended deadline will be "a relief to many pensioners who thought they might miss out on the opportunity to get a bond," said Sylvia Waycot, editor of Moneyfacts.co.uk. However, there's no room for complacency. "Even with the additional £5bn there is still not enough allocation for every pensioner to have one, and it is still a time-limited offer, so don't hang around thinking about it for too long – get online and apply as soon as you can," she added.
This is still the best advice, particularly as there won't be enough of these bonds to go round. The Treasury estimates that over 1 million pensioners could benefit, but you'll still need to be quick! You've only got until May, and if you want to benefit as soon as possible, it's wise to get the process started.
So, don't hang around – head straight to the NS&I website to get your hands on one of these market-leading products.
Don't qualify for the bonds? Check out the best savings accounts that are open to everyone
Find out about Pensioner Bond alternatives
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