Pensioner Bonds

Only one release of the bonds has been announced, and that's the one which launched on 15 January 2015 and closed on 15 May 2015. 

NS&I said there is no update at the moment at all on whether Pensioner Bonds will come back. If anything does happen, we will update you here and in the weekly email.

The interest rates on these accounts were very favourable when they were released. Below shows how they compared with other savings options:

• Pensioner Bonds smashed normal savings. At the time that Pensioner Bonds closed, the top paying one-year fixed account was Aldermore Bank 1.9% AER, which paid 1.52% after basic-rate tax. The one-year bond pays 2.8% AER, so you'd get 2.24% after basic-rate tax. This difference is equivalent to an extra £72 a year on the full £10,000 stashed away, or £90 if you don't pay tax (once you've reclaimed the extra interest). 
  
  The three-year bond was an even better deal. The next best three-year account at the time Pensioner Bonds closed was Paragon Bank's 2.5% AER, which paid 2% after basic-rate tax. The three-year NS&I bond pays 4%, so you'd get 3.2% after tax. This equates to an extra £120 a year if you pay tax, and £150 a year if you don't. See our top savings guide for full fixed-rate savings options.
  
  

• What about ISAs? How did they compare? Well, rates on ISAs are lower than for fixed savings, though the advantage is that you get to keep all the interest, an important bonus if you pay tax. But on the face of it, because the rates are so much higher on Pensioner Bonds, these did beat ISAs for basic-rate taxpayers.

  However, if you're a higher-rate taxpayer, it's not a given that Pensioner Bonds would have been the best deal. As the three-year bond pays 4%, then, after tax, a higher-rate taxpayer gets 2.4%. But, there are some fixed-rate ISAs (though longer term) which beat that return, as you get to keep all the interest AND it stays tax free.
   

• You could get 3-5% on your savings in a bank account NOW (though you'll need to work for it). Innovative 'loss-leader' bank accounts are the new players in the savings market. The Santander 123 account will pay you 3% AER on savings up to £20,000 and will pay your interest monthly. Or TSB will pay you 5% AER on up to £2,000 held.
  
  If you're really clever, you can play the system by opening multiple accounts and moving your cash to max interest. Our 5% savings loophole guide tells you how.