The new High Interest Deposit Bonds offer 3.5 per cent fixed for three years, or 3.75 per cent for savers who agree to lock their money away for five years.

Available to all investors over the age of 60, the bonds pay interest monthly, require a minimum deposit of £2,000 and allow a maximum balance of £49,999.

“We have been listening to our customers and exploring new ways in which we can help the over 60s for some time now.” said Richard Brown, head of HSBC savings accounts.

“High Interest Deposit Bonds are among the most straight-forward savings vehicles on the market. Savers know exactly where their money is, what rate of interest they’re earning, and when that interest will be paid, from the outset.”

While the Bank of England’s decision to cut interest rates from five per cent to 1.5 per cent in just four months has been of great benefit to some borrowers, who have seen their monthly payments fall accordingly, savers have been left out in the cold.

Banks have been trying to find a balance between offering competitive rates to both borrowers and savers, and in many cases it is the latter who have suffered the most; with some savings accounts now offering interest rates of just one per cent or less, they have seen their investments lose value and their incomes dwindle.

This has been especially hard on the over 60s, many of whom rely on their savings to top up their pension.

“Not only are we offering a market leading interest rate, but we’re also providing the over 60s with security and growth at a time when it’s most needed.” Mr Brown continued. “The added benefit is that interest is paid monthly – something which is so important to many people.”

© Fair Investment Company Ltd