Independent Financial Life Planners Bishop's Stortford: Pensioner Bonds AKA Granny Bonds are back...

Monday, 19 January 2015

Pensioner Bonds AKA Granny Bonds are back...

Making sure you near cash savings are in the best place is something Enables experienced financial advisors in Bishop’s Stortford would always recommend. It is often the case that the NS&I offer some of the best bonds and last week the Government’s eagerly-awaited market-leading Pensioner Bonds went on sale. Inevitably the high demand created problems on the National Savings and Investments website but the popularity of the bond was not a surprise given that the one-year bond pays 2.8 % while the return on the three-year bond is 4%.

Anna Bowes of Savingschampion.co.uk. has done the comparisons and it's clear, “The rates are head and shoulders above the nearest competition, paying 51 per cent more than the average 'top five' one-year fixed rate, and 61 per cent more than the average 'top five' three-year fixed rate,” Only those aged 65 and over however are allowed to invest in these Pensioner Bonds. Even if you are 65 or over and want to invest you will only be allowed to save £10,000 in each bond. But you can put that sum into both of the bonds on offer, meaning you could save £20,000 in each of the high-paying accounts and couples are allowed to put £40,000 in between them.

This offer will not be ongoing as the Government has set a £10 bn limit on the bonds, which means, that if everyone invested the maximum £20,000, only half a million pensioners would be able to buy the bonds. It is likely that if the issue is over-subscribed the bonds will be handed out on a first-come, first-served basis. If you want to apply online is very likely to be the best way. Enables IFA’s in Bishop’s Stortford are here to talk through other options for your savings.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.