New government savings bonds exclusively available to the over-65s are now on sale. The bonds, which were confirmed by the Chancellor George Osborne in December, offer higher-than-average rates for senior doctors who have witnessed poor interest on their savings in recent years.

The 65+ Guaranteed Growth bonds are on sale through National Savings and Investments (NS&I) and offer savers interest of 2.8 per cent over one year and a fixed annual interest rate of 4 per cent over three years. A saver investing the maximum £10,000 will receive a £280 return on a one-year bond before tax and £1248 from the three-year bond before tax.

After very low interest rates for the last five years we expect these so-called ‘pensioners bonds’ to be very popular – particularly as they come with a government guarantee. Typical market interest rates on three-year bonds currently only offer around 2.5 per cent which means the NS&I product provides a 1.5 per cent premium. However, remember you will pay tax on your interest.

Savers are limited to a maximum investment of £10,000 in each product and invested sums cannot be withdrawn without penalty.