The bonds, to be launched in January, will only be open to those aged 65 and over and investment will be limited to £10,000 in each bond meaning an individual can invest up to £20,000 across the two bonds.
Pensioners investing the maximum of £10,000 in a three-year bond will earn £1248 before tax.
The new bonds were unveiled in the March 2014 Budget.
The bonds are lump sum investments providing capital growth with a choice of terms – one year and three years. They are designed to be held for a whole term but can be cashed in early with a penalty equivalent to 90 days' interest.
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The minimum sum for each investment will be £500 and the maximum per person per issue of each term will be £10,000. Interest will be applied via fixed rates, guaranteed for the whole term.
Prior to the announcement NS&I said it expected the rates to be "highly competitive". There has been considerable interest from financial advisers and pensioner concerned about poor savings rates elsewhere.
The bonds are expected to go on sale in January for a limited period. Anyone aged 65 or over can invest in them singly or jointly as long as at least one person is aged 65 or over.
Interest will be fixed and guaranteed for the whole term with interest added on each anniversary. The aim is to keep rates competitive.
Interest will be taxable and paid net. It will not be possible to use the R85 scheme to receive gross interest.
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The bonds are lump sum investments providing capital growth with a choice of terms – one year and three years. They are designed to be held for a whole term but can be cashed in early with a penalty equivalent to 90 days' interest.
{desktop}{/desktop}{mobile}{/mobile}
The minimum sum for each investment will be £500 and the maximum per person per issue of each term will be £10,000. Interest will be applied via fixed rates, guaranteed for the whole term.
Prior to the announcement NS&I said it expected the rates to be "highly competitive". There has been considerable interest from financial advisers and pensioner concerned about poor savings rates elsewhere.
The bonds are expected to go on sale in January for a limited period. Anyone aged 65 or over can invest in them singly or jointly as long as at least one person is aged 65 or over.
Interest will be fixed and guaranteed for the whole term with interest added on each anniversary. The aim is to keep rates competitive.
Interest will be taxable and paid net. It will not be possible to use the R85 scheme to receive gross interest.
Get FREE daily news summaries direct to your inbox. Sign up on the homepage now.
For the latest Sipp, SSAS and retirement news visit our sister news site www.sippsprofessional.co.uk and on Twitter @SippsPro.