National Savings and Investment Granny bonds were available to the over 65s between January 2015 and May 2015.

The bonds paid out fixed interest of 2.8% for a one year bond and 4% for a three year bond.

Interest was paid net of basic rate tax and savers received an annual statement.

Non-taxpayers needed to reclaim this tax deducted at source using form R40.

From 6 April 2015, the 0% savings income tax band up to £5,000 was introduced. Someone with pensions income below the personal allowance of £10,600 and gross savings income of up to £5,000 was able to claim an annual refund.

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