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Pensioner bonds a hit with savers

More than a million savers have bought over £13 billion of market-leading pensioner bonds.

The bonds have proved hugely popular and have been the biggest selling retail financial product in Britain's modern history, the Treasury said.

The 65+ pensioner bonds, which went on sale on January 15, have annual interest rates of 4% for the three year bonds and 2.8% for the one year bonds.

They were available through National Savings and Investments (NS&I) and closed for sale at 11.59pm last night.

A stampede when the bonds first went on sale meant that NS&I's website initially struggled under the weight of demand.

NS&I is a Treasury-backed body, meaning that the money invested with it is guaranteed as being completely secure.

Chancellor George Osborne hailed the bonds as a "huge success", adding: " They're now helping over a million older savers who have done the right thing, by boosting the return on their savings and securing a more comfortable financial future.

"It's part of our long term plan to support savers and boost peoples' financial security at all stages of life."

The government had originally allocated £10 billion for these bonds. But in February the Chancellor announced that they would be on sale for four months, until May 15, to ensure that those aged 65 and over who wanted to benefit from their market leading rates had time to do so.

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From Belfast Telegraph