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Pensioner Bonds To Pay 2.8% And 4%

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Pensioner bonds to pay 2.8% and 4%_79697882_478694863.jpg

New pensioner bonds are to carry market-leading interest rates, the government announces, with the products due to be launched in January.

Once more the boomers get looked after, massive HPI and now they get improved saving rates whilst everyone else gets shafted.

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Well...I'll be signing up at least the or the 4% ones on my folks behalf...can probably beat 2.8% for now using current accounts, but we'll see.

I predict the rush when these go on sale means it's going to be the boomer equivalent of the military operation involved in getting Glastonbury tickets these days. Probably need 5 PCs, 2 phone lines and be vpning elsewhere too. 404s all over the shop.

Mind you, only the boomers can afford Glastonbury too now.

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Well...I'll be signing up at least the or the 4% ones on my folks behalf...can probably beat 2.8% for now using current accounts, but we'll see.

I predict the rush when these go on sale means it's going to be the boomer equivalent of the military operation involved in getting Glastonbury tickets these days. Probably need 5 PCs, 2 phone lines and be vpning elsewhere too. 404s all over the shop.

Mind you, only the boomers can afford Glastonbury too now.

Perhaps we can front run them and sell them on for a cut? :lol:

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Once more the boomers get looked after, massive HPI and now they get improved saving rates whilst everyone else gets shafted.

No they don't (except a few very early boomers)

Their parents do however.

Only those aged 65 and over are eligible to invest in the bonds
The Pensioner Bond was a Budget promise from the chancellor, following lobbying from charities. They argued that pensioners who had relied on the income generated from their life savings were particularly hard hit by more than five years' of record low interest rates.
The interest on both bonds will only be payable at the end of the term, and anyone wanting to take their money out early will lose 90 days interest.

Eh? So they cannot rely on the income if it's only payable in 3 yrs time. A not insubstantial cohort of the hoped for 1m subscribers will be dead before they receive the interest! Well done Gidiot.

Edited by R K

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No they don't (except a few very early boomers)

Their parents do however.

Stop being a party pooper. A little boomer bashing is one of life's few pleasures, even when its utterly misplaced.

Its those pesky early Gen Xers who are got the real golden ticket. Hpi, possible final salary pensions, free education AND relative youth. Plus they got to play on 2600s and zx81s. What utter gits. The blame will no doubt move on to them soon enough.

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At least its an attractive alternative to BTL for those cashing in their pensions.

only 10K in the high paying bond and 10K in the 1 year - nothing to see here.

then there is tax to pay on the interest ?

I look forward to the days when savings rates are reasonable FOR ALL - and none of this over 65 nonsense.l

just to add - over 65s cannot usually cash in their pensions as they will probably be already taking them!

Edited by olliegog

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only 10K in the high paying bond and 10K in the 1 year - nothing to see here.

then there is tax to pay on the interest ?

I look forward to the days when savings rates are reasonable FOR ALL - and none of this over 65 nonsense.l

just to add - over 65s cannot usually cash in their pensions as they will probably be already taking them!

Yep tax.

Another question this information pack poses...

Q. Why are these bonds being offered ?.........LOL....Because there is a general election coming up and the over 65s are more equal and its essential to protect the age profile that controls over half of uk net wealth. It's the new inverted benefits' system, get used to it.

http://www.moneysavingexpert.com/savings/pensioner-bonds

Edited by crashmonitor

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....no difference then than juggling some pounds around a few current accounts....what you have to do to try and maintain the value of savings.....how can current accounts pay more in interest than a savings account.....madness.

Ten thousand pounds is interest now rationed?

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The problem with this 'bond offer' is that it's actually worth **** all, but the elderly will say 'at least Mr Cameron is looking after us old age pensioners, Doris. Have you seen the price of sprouts?"

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Stop being a party pooper. A little boomer bashing is one of life's few pleasures, even when its utterly misplaced.

Its those pesky early Gen Xers who are got the real golden ticket. Hpi, possible final salary pensions, free education AND relative youth. Plus they got to play on 2600s and zx81s. What utter gits. The blame will no doubt move on to them soon enough.

It was free education before it became a govt system for keeping large numbers of 18-21 year olds off the dole, now they pay £27k for the privilege of not claiming benefits.

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The people who will most likely benefit from this bond are the children of the OAP when the OAP dies. The bond is just big enough to pay for a funeral.

Every pound saved after the age of 70 is a pound wasted.

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There seems to have been a mad rush for these. I suppose with the drop in inflation they do look attractive. Still though many arr in a position to tie up large sums and what on the face of it looks like free money.

This is not advice

Edited by Ash4781

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There seems to have been a mad rush for these. I suppose with the drop in inflation they do look attractive. Still though many arr in a position to tie up large sums and what on the face of it looks like free money.

This is not advice

Nothing in life is free.....VOTE TORY, THEY LOOK AFTER SAVERS!!!!!!!

Vote UKIP, the old are f**king you over.

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In typical govt fasion, old people who these are targetted at, will have to apply online (!), or over the phone or order a form over the phone.

Not sure gidiot has grasped what being "old" means......

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The Pensioner Bond was a Budget promise from the chancellor, following lobbying from charities. They argued that pensioners who had relied on the income generated from their life savings were particularly hard hit by more than five years' of record low interest rates.

The Bond will so compensate people for the years of record low interest rates - not.

If you qualify you can put £10,000 + £10,000 total maximum in each of the 2.8% and 4% Bonds. Likely it's a pre-election one off and likely if you withdraw early from either Bond there'll be penalties - that's if you are actually allowed to withdraw early at all.

So for the I year bond it's about £80 extra after tax over 1 year and for the 4% about £400 extra after tax over 3 years - compared to what's on the "High Street". A bit better than nothing but compensation certainly not.

The money would have been better spent on building more houses for young people.

Edited by billybong

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The Bond will so compensate OLD people for the years of record low interest rates - not.

If you qualify you can put £10,000 + £10,000 total maximum in each of the 2.8% and 4% Bonds. Likely it's a pre-election one off and likely if you withdraw early from either Bond there'll be penalties - that's if you are actually allowed to withdraw early at all.

So for the I year bond it's about £80 extra after tax and for the 4% about £400 extra after tax - compared to what's on the "High Street". A bit better than nothing but compensation certainly not.

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Old or young the amounts would not compensate.

The money would have been better spent on building more houses for young people.

Edited by billybong

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