Budget 2014: Budget 2014: Pensioner Bonds coming for over-65s

A question about : Budget 2014: Budget 2014: Pensioner Bonds coming for over-65s

Special Pensioner Bonds paying market-leading fixed savings rates will be available from January 2015 to all over-65s, Chancellor George Osborne announced in today's Budget...

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Budget 2014: Pensioner Bonds for over-65s

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• Pensioner bonds that start as from January 2015, BUT are only for pensioners over 65.
  Meaning that some female pensioners in receipt of their State Pension won't be able to get their Pensioner Bonds because of being under 65.
  My very first thought personally was "Another thing I have to wait till my personal revised State Pension Age for even though I'm a pensioner (ie over 60 and retired)", which was closely followed by "....OH.....they are going to make me till wait about 2 years after I reach my revised State Pension Age to be able to get them. Whereas men will be able to get them the second they reach THEIR State Pension Age".
  Surely Pensioner Bonds should be applicable to all pensioners (ie everyone 60+ who is retired) or, at the least, all pensioners who have reached their personal State Pension Age?
• Most of the reports state that each pensioner will be able to invest up to Ј10,000 in these bonds; and I agree that is probably correct.
  However that wasn't what the Chancellor stated in his speech, and indeed the extract from the full Budget statement doesn't say that either!
  Quote:
• Before tax? You can get more than that in a Santander 123 account!!!
• Will the bonds offer tax free rates?
• Isn't Pensioner Bond a strange choice of name for this product? There will be women of state pension age but under 65 and thus ineligible and people over 65 who for whatever reason are not drawing a state pension but will it seems be eligible.
• Cut & pasted from the red Book
  •• launching in January 2015 a range of fixed-rate, market-leading savings bonds for people
  aged 65 and over, taxable in line with all other savings income. Interest rates and individual
  investment limits will be confirmed at Autumn Statement 2014 to take account of prevailing
  market conditions but the central assumption made at Budget 2014 is that NS&I will launch
  a 1-year bond paying 2.8% gross/AER and a 3-year bond paying 4.0% gross/AER, with an
  investment limit of Ј10,000 per bond.
  Their bonds, their rules. Seems fair to me.
  No mention of pensioners
• This is another of the by products for the feminists - equality! But just because it doesn't suit you please don't grumble about it!
• And I shall be 65 in January 2015 .
  Great, I will put my Local Government Lump Sum of Ј6k + into one . Very pleased .
• Wow. Tie up all your money for a fixed period of years at a fixed rate of interest and pay tax on the interest.
  I think I do better with my S&S ISA.
• and I'm not enticed either! I'm not sure why you would want to tie your money up this way- not exactly big bucks.You'd do almost as well with current a/cs at Lloyds & TSB.
  I have had a bond in the past from national savings and then (don't know if it is still the case) the interest was paid out gross so that the onus was on you to contact HM Tax & Revenue. I did do that eventually and told them it was a one off payment, then subsequently discovered they had reduced my tax code for the following years. It was resolved but I vowed after that to have products which paid tax at source. Much easier!!