Pensioner bond rates cut by half

Carmen Reichman
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Interest rates on government bonds for the over-65s have been cut by half for those who want to renew them.

The bonds initially offered market-beating rates of 2.8% for the one-year product but will offer only 1.45% after it is renewed. Bonds were open from 15 January this year until 15 May, so the first maturities will be in the coming month. Sole distributer of the products National Savings & Investments (NS&I) wrote to the first holders 30 days before the maturity of their products. NS&I initially offered 4% for its three-year pensioner bond but will now offer those wanting to switch to the longer-term product 1.9%. The bonds were originally announced by Chancellor George Osborne in h...

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