NS&I, the state-backed savings provider, has confirmed it is hiking interest rates for its fixed-term Bonds from Tuesday after a review of customer accounts. The changes affect new issues of 1, 2, 3 and 5-year fixed-term British Savings Bonds, as well as Guaranteed Growth and Guaranteed Income Bonds. Additionally, a new issue of 3-year fixed-term Green Savings Bonds is now available at 4.45% gross/AER.
Details of the Rate Increases
The new rates apply to the following bonds: Guaranteed Growth Bonds 1-year (Issue 90), Guaranteed Income Bonds 1-year (Issue 90), Guaranteed Growth Bonds 2-year (Issue 78), Guaranteed Income Bonds 2-year (Issue 78), Guaranteed Growth Bonds 3-year (Issue 80), Guaranteed Income Bonds 3-year (Issue 80), Guaranteed Growth Bonds 5-year (Issue 72), Guaranteed Income Bonds 5-year (Issue 72), and Green Savings Bonds (3-year fixed-term) (Issue 9). The new Issues are available to both new and maturing customers.
Market Conditions and Security
Andrew Westhead, NS&I Retail Director, said: “We regularly review our products to ensure they reflect current market conditions, and today’s increases respond to changes in the fixed-term savings market. Our fixed-rate Bonds offer savers the choice of different term lengths with the certainty of knowing the interest rate they will receive over the full term, alongside the reassurance that all money invested with NS&I is 100% secure, backed by HM Treasury.”
Investment Requirements and Terms
The new Green Savings Bonds pay 4.45% gross/AER fixed-rate over a 3-year term, with a minimum investment of £100 and a maximum limit of £100,000 per person per issue. For British Savings Bonds, the minimum investment is £500, with a maximum of £1 million per person per issue. Funds cannot be withdrawn early from these fixed-term accounts. After the fixed-term period, savers can choose to withdraw their cash or reinvest into a new term.
