One result of their wails was that thousands of people rushed to the Post Office with their savings. It makes sense for the societies not to complain.
The granny bond does look a good buy. A gross return of 7 per cent on a five-year bond is slightly higher than expected.
There are no figures for the proportion of the 8.7 million people over 65 who are both taxpayers and savers. But the return looks competitive for both taxpaying and non-taxpaying pensioners and is matched only by the very best guaranteed income bonds (which pay interest annually).
It is also well above what a professional investor can get in the market, with the yield to redemption on a five-year gilt now under 6 per cent.Reuse content