Banks and building societies expect to lose billions in deposits when the NS&I Pensioner Bond launches next January, says the Times.
With interest rates of 2.8% for one year and 4% for three years, the Pensioner Bond rates are well above anything currently on offer in the savings market. The boss of the Nationwide described it as the ‘deal of the century’.
The Pensioner Bond is limited to those over age 65 and has a maximum of £10,000 per person. It will also be first-come, first-served since the Treasury has capped the total available at these rates. News of how to apply will be released in November.