A big change has been announced today for anyone who has Premium Bonds. NS&I has raised interest rates on fixed-term British Savings Bonds.
NS&I has today increased interest rates for savers, with new Issues of its 1, 2, 3 and 5-year fixed-term British Savings Bonds – Guaranteed Growth Bonds (GGB) and Guaranteed Income Bonds (GIB). The new Issues are available to both new and maturing customers.
The bank said the rate increases reflect changes in the wider savings market and will help NS&I to meet its Net Financing target while continuing to balance the interests of savers, taxpayers and the broader financial services sector.
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.”
British Savings Bonds – Guaranteed Growth Bonds and Guaranteed Income Bonds
British Savings Bonds (GGB and GIB) 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 Funds cannot be withdrawn early with fixed-term accounts.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 will need a minimum investment of £500 and can invest a maximum of £1 million per person in each Issue. After the fixed-term period, savers will have the choice to withdraw their cash or reinvest into a new term.
New interest rate product summary
British Savings Bonds are fixed-term issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds. Sarah Coles, head of personal finance at AJ Bell, said last month when the rates were again increased: “the savings market is impressively competitive right now, and NS&I has entered the fray.
“Banks are pulling out all the stops to compete, keeping fixed-rate deals higher and forcing NS&I to raise rates again to attract the cash it needs.
“It’s bucking the trend of the rest of the fixed-rate market, which is now rewarding savers very slightly more for tying up their cash for longer.
“NS&I is still offering the best rate on its one-year fix. This is likely to be an indication of what’s going on behind the scenes.
“The one-year market takes more money than any of the other fixed-rate periods.”
