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UK Government Launches 'Pensioner Bonds'

Tuesday, February 17, 2015

British pensioners living abroad may qualify for National Savings and Investments's new 65+ Guaranteed Growth Bond.

The savings bond, which was launched on January 15, has been extremely popular among British pensioners, who have been among the worst hit by recent low interest rates. The three-year bond pays an impressive four percent interest, and the one-year bond pays 2.8 percent interest.

Expats may invest in the bonds, but they must have a British bank account or building society account in their own name, undoubtedly ruling some expats out. US citizens are also excluded.

Up to GBP10,000 (USD15,360) can be invested in each term and there is a penalty for withdrawing cash before the end of the fixed term. Non-tax resident over-65s will be able to apply for a refund of the tax levied on the interest earned from the bond.