Forum Topic

Pensioners' Bonds in January 2015?

Will the new Pensioers' Bonds fixed rate at 4% for 3 years be a good buy in January? If they are a good buy, will they be quickly over-subscribed? Will they be compound interest paying?

Gerry Tan ● 4153d8 Comments

Was on BBC url.

Graham Weeks ● 4152d

I have not heard about this, will Google

Simon Bell ● 4152d

Can't help seeing it as blatant vote-buying, which may backfire if lots of people are disappointed in their application and believe themselves unfairly treated.

Susan Kelly ● 4153d

"Academic to me as I am nowhere near 65."As an octogenarian this bond interests moi. Thanks for your advice Nigel.

Gerry Tan ● 4153d

Gerry, they are paying compound interest but do remember that no annual interest is paid. It is only paid on maturity. They are expected, and I cannot disagree given the paltry interest rates elsewhere, to be hugely oversubscribed. I wonder how they will allocate. Proportionately with each 'subscriber' getting a fractional amount of first come first served.Academic to me as I am nowhere near 65.

Nigel Brooks ● 4153d

It sounds like such a good deal I almost wish I was 65...!

Keith Iddon ● 4153d

I hope to buy and anticipate huge demand.

Graham Weeks ● 4153d

I think it's safe to say they will be over-subscribed: there are 11 million 65+s and if everyone wants their full allocation, there will be enough to satisfy half a million of them.

Susan Kelly ● 4153d