NS&I, the organisation behind Premium Bonds and other savings products, has introduced new issues of its fixed-term British Savings Bonds with increased interest rates. The changes affect Guaranteed Growth Bonds and Guaranteed Income Bonds, which are now available to new customers and those with maturing bonds.
New Interest Rates
The updated rates for the Growth option are as follows: 1-year at 4.50% gross/AER, 2-year at 4.48% gross/AER, 3-year at 4.45% gross/AER, and 5-year at 4.40% gross/AER. For the Income option, the rates are 4.41% gross (4.50% AER) for 1-year, 4.40% gross (4.48% AER) for 2-year, 4.37% gross (4.45% AER) for 3-year, and 4.32% gross (4.40% AER) for 5-year.
Product Details
British Savings Bonds are fixed-term accounts offering a guaranteed interest rate for 1, 2, 3, or 5 years. Funds cannot be withdrawn early. The minimum investment is £500, and the maximum is £1 million per person per issue. At maturity, savers can withdraw their cash or reinvest into a new term.
NS&I is backed by HM Treasury, providing 100% capital security. It serves over 24 million customers in the UK. The interest rate on its Investment Account has also been increased.
