Last chance to sign up for your Pensioner Bond

IF YOU want to buy the Government’s top-paying bonds for pensioners, do it over the phone or internet.

You have just two days to grab the top paying 65+ Guaranteed Growth bonds for those aged 65 and over from National Savings & Investments (NS&I).

They will be withdrawn from sale just before midnight on Friday.

Postal applications must also be received by this time. But if you call now to request an application form in the post you are likely to miss the deadline.

When the bonds were launched in January, huge demand for the high-interest investments for the over-65s caused the NS&I site to crash. Callers also found that a helpline was constantly engaged, with no queuing system or call-back service.

But an NS&I spokesman says: ‘We are deploying extra staff in our call centres to meet any increase in demand in the final week.’ The bonds pay far higher rates than anything on offer from banks and building societies.

The one- year deal pays 2.24 pc after tax ( 2.8 pc before) and the three-year version 3.2 pc (4 pc).

Minimum investment is £ 500 and the maximum £10,000 per person per bond — so a married couple can each hold a three-year bond and a one-year bond, making a joint total of £40,000.

Interest is paid at the end of the term. On the one-year bond, you will earn £280 interest before tax on £10,000.

Rates are dropping in the High Street. This week, Santander cut its one-year rate to just 0.72 pc (0.9 pc) for customers who don’t use its 123 current account.

The best one- year deal comes from internet bank Firstsave at 1.52 pc.

For two years, Firstsave pays 1.72 pc (2.15 pc), while the top three-year deal is 2 pc (2.5 pc) from Paragon Bank.