ILKLEY Conservative MP Kris Hopkins has welcomed the launch of a new government backed National Savings and Investments Bond for pensioners.

The new bonds for people aged 65 and over will offer market leading rates and support people who rely on their savings in retirement.

Two bonds have been launched: a one year bond which will offer returns of 2.8 per cent gross/AER interest, and a three year bond will pay four per cent gross/AER interest.

£10 billion has been made available to allow these bonds to be issued with the aim ensuring they are on the market for a period of months, giving those pensioners who wish to take advantage of the rates plenty of time to do so.

Mr Hopkins, the Communities and Local Government minister, said: “While the sustained period of low interest rates have been very welcome to homeowners, they have been less helpful for savers who have worked hard to build a nest egg.

“However, a key part of the Conservative led government’s long term economic plan is to support savers and boost financial security for hardworking people young and old.

“I am therefore very pleased that we have introduced government backed savings bonds for people aged 65 and over that pay the best interest rates in the market.

“They have already been a huge success and because this is the biggest ever retail bond on offer, these new bonds will be available for many months.

“This is great news for pensioners in Keighley and Ilkley.

“It is very important that savers are rewarded and these bonds do that by giving older savers the certainty and comfort of a good return over the life of their investment.”