Deadline on pensioner bonds extended by Osborne

Alexander Newton

Pensioner bonds are to be offered for a further three months, chancellor George Osborne has announced. Osborne told the BBC pensioners will now have until May to apply for the bonds and that the government planned to allow £15 billion to be invested in the products, up from the previous limit of £10 billion.

Pensioner bonds were launched by National Savings & Investments (NS&I) on 15 January. The one-year bond pays an annual interest rate of 2.8% before tax, with the three-year bond paying 4% before tax.

The bonds have proved popular and NS&I’s website has struggled to cope under the weight of demand. In the first two days of being on offer, 600,000 people signed up to the bonds.

Osborne told the BBC the bonds had been ‘the most successful saving product this country had ever seen’. Labour has accused Osborne of attempting to woo the grey vote by moving the bond deadline to 15 May, a week after the general election.