Medical Money Management > Knowledge Centre > NS&I 65+ Guaranteed Growth Bonds

NS&I 65+ Guaranteed Growth Bonds

As advised in our summary of the Chancellor’s Autumn Statement, these growth bonds are now open for investment. If you are 65 or over you can invest between a minimum of £500 and maximum of £10,000 into a one year and a three year growth bond giving a maximum investment per individual of £20,000 or £40,000 per couple.

Interest will be paid on maturity with 20% tax deducted at source, over a choice of two investment terms;

1-year Bond paying 2.80% Gross/AER*

3-year bond paying 4.00% Gross/AER*

These bonds are fixed rate investments designed to be held for the whole term. However, they can be cashed earlier subject to a penalty equivalent to 90 days’ interest. Please note that interest is paid on maturity so the investments are not suitable for anyone requiring regular income.

We understand that a maximum of £10 billion has been made available by the Government and although this sounds like a lot of money, the bonds are likely to prove popular and we recommend that you act sooner rather than later if you wish to invest. Investors can apply online through or by phone (0500 500 000) and post.

*Gross is the taxable rate of interest before the deduction of UK Income Tax.

*AER (Annual Equivalent Rate) is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and AER are the same.


Please contact your usual MMM Adviser if you need guidance on the suitability of these investments for you.