Pensioners shopping at a Winchester Christmas market stall selling decorations in the shape of stars
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New pensioner bonds to launch in January

New "pensioner bonds" with generous interest rates are being offered to the over-65s as part of a Treasury initiative.

The bonds, available from January, will pay an annual interest rate of 2.8%, and the three-year bonds will pay 4% on deposits of up to £10,000, although earnings will be taxed.

Simon Gompertz joined a group a pensioners on a day trip to Winchester to find out what they thought.

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