Government-owned NS&I shot into the Best Buy tables this week with an almost four-fold increase in the rates paid by its Guaranteed Growth Bonds and Guaranteed Income Bonds. These now pay between 3.95% and 4.60%, depending how long they are held.
The increase in rates comes as NS&I stops making Guaranteed Growth Bonds and Guaranteed Income Bonds available from the Post Office and moves to direct sales channels. The new high-interest issues are only available by telephone, online or by post. For more details and the full range of NS&I savings products see NS&I’s website.
The interest rate paid by NS&I on its Guaranteed Growth Bonds has risen dramatically, from just 1% on the 1-year offering to a highly competitive 3.95%. The 2-year growth bond has increased to 4.25%, the 3-year to 4.4% and the five-year to 4.6%. These new rates contrast strongly with Bank of England base rate, which remains at an historic low of 0.5%.
Commenting on the move, an NS&I spokesman said: ‘The new Issues of our Guaranteed Growth Bonds and our Guaranteed Income Bonds are good news for savers…we hope that the new Issues will be highly attractive to customers who are looking for a guaranteed fixed rate of interest, coupled with 100% security for their money, as NS&I is backed by HM Treasury.’
The NS&I 3.95% 1-year fixed rate Guaranteed Growth Bond moves to the top of our one year fixed rate savings accounts Best Buy table, ahead of Saga’s 1 year Internet Fixed Rate Bond, which pays 3.75%. For more details of other fixed rate savings accounts see our full online table.
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