The much-anticipated pensioner bonds have been launched this morning, with NS&I’s website facing teething problems due to high demand.
Announced in last year’s Budget, up to £10bn of bonds have been made available to people aged 65 and over.
The interest rates for the bonds were announced in the Autumn Statement, with a one-year bond paying 2.8 per cent and a three-year bond paying 4 per cent.
The bonds are now on sale at nsandi.com but within an hour the website faced problems and an error message was displayed.
This morning NS&I tweeted that it was experiencing “high demand” and said it was grateful for its customers’ patience.
The problems now appear to have been resolved.
Jane Platt, chief executive of NS&I, said: “We expect these bonds to be on sale for months not weeks and would like to reassure savers that there is no need to rush to invest.
“We would also encourage savers to apply online. This should be the quickest and easiest way to invest and will provide immediate assurance that an application has been received.”
Investments of between £500 and £10,000 can be made in each one-year or three-year bond and a maximum £20,000 per person or £40,000 per couple single and joint applications can be made.
Earlier this week NS&I, the state-owned savings bank, said 46,000 people signed up to receive email updates about the bonds between April and October 2014.
Chancellor of the Exchequer George Osborne said: “A key part of our long term economic plan is to support savers and boost hardworking people’s financial security at all stages of life.
“That’s why I am delighted to announce that the government’s new 65 plus bonds are now on sale with the best interest rates in the market.
“These bonds will give hundreds of thousands of older savers the certainty and comfort of a good return over the life of their investment.”
Independent pensions expert Ros Altmann said: “If you are over 65 and have money in bank or building society accounts which you intend to keep there for at least the next one or three years, you should seriously consider applying for these new NS&I 65+ Guaranteed Growth Bonds.
“I wouldn’t expect these bonds to sell out too quickly because they do need you to be able to tie up £20,000 of cash savings for some time.
“However the rates they offer are so attractive that if you’re over 65 and do have that kind of money sitting in a savings account, the sooner you apply, the sooner your money can start earning more for you.”
