Investors who were tempted to place savings in the Governments ‘pensioner bonds’ will be disappointed to discover that the returns they expected have been halved.
The bonds had been designed to encourage the over-65s to invest, with attractive returns on cash savings tied over one or three-year periods, however, despite only being unveiled in the 2014 Budget, the scheme has now been radically changed.
It is understood that around 470,000 savers with money tied to the one-year bond will be given 30-days to transfer their investment to another account, or see a 49% interest rate cut imposed – from 2.8% to 1.45%.
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