More than 100,000 savvy silver-haired savers have jumped at the chance to buy the government's new pensioner bonds, netting the Treasury more than £1bn in just two days.
Chancellor George Osborne called it "the biggest opening sales of any retail financial product in Britain's modern history” after the one and three-year bonds went on sale to huge demand two days ago, crashing the National Savings and Investments website.
“Our economic plan involves supporting savers and I'm delighted to report that it is proving hugely popular. I can confirm that the latest figures, available this morning, show that our 65-plus pensioner bond has had the biggest opening sales of any retail financial product in Britain's modern history. £1.15bn of these bonds have now been sold in the first two days, to over 110,000 pensioners. And there's plenty more available because we’re offering up to £10 billion for sale, so we expect them to be on sale for months. It just shows what an appetite there is for an economic plan that rewards savers,” said Osborne.
The so-called "granny bonds" available to those aged over 65 offer 2.8 per cent interest for the one-year bond and four per cent interest on a three-year bond. Silver savers can invest up to £10,000 in each.
National Savings and Investments which also run premium bonds and other savings products for the government, assured the bond would be available for months, however experts have warned they could be unavailable within weeks as pensioners take advantage of the favourable rates.