NS&I has contacted customers to announce increased rates on its British Savings Bonds, with one-year Growth Bonds now paying 4.99% gross/AER. On the average UK savings pot of £19,214, that would mean £981.01 in interest at the end of twelve months.
New bond issues and options
The messages, which say “saving makes your future plans possible”, explain that customers can receive “guaranteed returns” and can “save from £500 up to £1 million in each Issue”. Money is 100% secure and backed by HM Treasury, and customers can choose from growth or income options.
NS&I confirmed new Issues of its British Savings Bonds, fixed for one year or longer. Bonds come in two options: Growth or Income. Growth Bonds see the interest added at the end of the term, while Income Bonds see the interest paid to your bank account each month.
Rates and how much you could get
For one-year Bonds, the Growth option rate is 4.99% gross/AER. For Income Bonds, the interest rate is 4.88% gross/4.99% AER, and both rates are fixed for one year. Savers can also take advantage of two, three, and five-year fixed-term options, though interest rates vary.
Money is 100% safe
Andrew Westhead, NS&I Retail Director, said: “We’re pleased to be increasing interest rates across our 1, 2, 3, and 5-year British Savings Bonds, responding to changes in the wider market and giving savers the certainty of a guaranteed return for the duration of their chosen term.
“Alongside these improved rates, customers continue to benefit from the reassurance that all money invested with NS&I is 100% secure and backed by HM Treasury.”
British Savings Bonds (GGB and GIB) are open to customers seeking a guaranteed interest rate for fixed periods of one, two, three, or five years. Early withdrawals are not permitted with fixed-term accounts. Savers require a minimum deposit of £500 and can place a maximum of £1 million per person in each Issue. Once the fixed-term period concludes, savers have the option to withdraw their funds or reinvest into a fresh term.
