NS&I has today boosted interest rates on its British Savings Bonds to as high as 4.75% AER and has launched new issues of one, two, three and five year fixed-rate bonds.
British Savings Bonds are fixed-term issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds.
NS&I said today’s rate increases reflect changes in the wider market and will help it to meet its Net Financing target while continuing to balance the interests of savers, taxpayers and the broader financial services sector.
- The new interest rate on the 1-year Growth option has climbed to 4.72% gross/AER from 4.69%. The rate on the Income option has been increased from 4.6% gross/4.69% AER to 4.63% gross/4.72% AER.
- The new interest rate on the 2-year Growth option is 4.70% gross/AER up from 4.67%, and the Income option is now 4.61% gross/4.70% AER, up from 4.58% gross/4.67% AER.
- The new interest rate on the 5-year Growth option is 4.75% gross/AER up from 4.55% gross/AER, and the Income option is 4.65% gross/4.75% AER 4.46% gross/4.55% AER.
Andrew Westhead, NS&I retail director, said: “Today’s increases mean savers can now choose from improved fixed-term rates across our 1, 2, 3 and 5-year British Savings Bonds, with the certainty of knowing exactly what return they will receive over their chosen term.
“Alongside that certainty, customers continue to benefit from the reassurance that all money invested with NS&I is 100% secure and backed by HM Treasury.”
Source: NS&I
British Savings Bonds are available to customers wanting a guaranteed interest rate for fixed terms of 1, 2, 3 or 5 years.
Funds cannot be withdrawn early with fixed-term accounts. Savers need a minimum investment of £500 and can invest a maximum of £1m per person in each Issue. After the fixed-term period, savers have the choice to withdraw their cash or reinvest into a new term.