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What are Pensioner Bonds? Ten things you need to know

Have you heard of Pensioner Bonds? No, they’re nothing do to with Roger Moore or Sean Connery - it’s actually a new form of savings account.

Rather than saving with a bank, you’re putting your money into a government protected scheme. In return you’ll get a guaranteed amount of interest. These new Pensioner Bonds - officially called 65+ Guaranteed Growth Bonds - are available from National Savings & Investments (NS&I), and the interest rates could make them a better option than standard savings accounts or even ISAs.

Here are 10 things you need to know about the Pensioner Bonds.

  1. Anyone aged 65 or over will be able to get one for their savings.
  2. They're available online at, by phone or by post, though it's first come, first serve so postal applicants may miss out.
  3. There are two types. One with a fixed term of one year, the other fixed for three years.
  4. Interest rates are 2.8% for the one year bond and 4% for the three year bond.
  5. Interest will be paid at the end of the bond’s term.
  6. You will have to pay tax on the interest you earn.
  7. If you withdraw money early, you will pay a 90 day penalty on the interest.
  8. Minimum investment will be £500 in each bond and the maximum will be £10,000.
  9. You can have one of each bond. So that’s a maximum of £20,000 per person.
  10. They’re only available for limited time – until £15 billion worth have been sold.

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  • Mike Deans / 13 January 2015

    I wonder what the other options are out there and if the interest on these bonds really is that good?

  • Paul / 12 January 2015

    Better than I can get in the bank. What does "you cna have one of each bond" mean?

    ADMIN: Thanks Paul. We've updated the article to make that clearer