Pensioner Bonds sale extended until May

The government has announced that sale of the controversial Pensioner Fixed Rate Savings Bonds is to be extended by an extra three months.

George Osborne said he would extend the application deadline until mid-May, because of the overwhelming demand for the high interest bonds. Over 600,000 over-65s have bought them since they were launched in mid January.

The chancellor said that encouraging savers was fundamental to the UK’s economic recovery; and that the over 65’s bonds were “the most successful savings product this country has ever seen”.

With rates of 2.8% for a 1 year Bond and 4% payable for three years the bonds offer returns way better than anything currently available from banks and building societies and many are not surprised about the level of take up.

However, some experts were quick to criticise the move, feeling that that the scheme’s extension was little more than pre election stunt to try to win over wealthy pensioners.

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