- 3-year fixed-rate British Savings Bonds now on sale at 4.15% gross/AER
The three-year fixed-rate British Savings Bonds announced by the Chancellor of the Exchequer in the Spring Budget are now on sale. The Guaranteed Growth Bond option is available at 4.15% gross/AER and the Guaranteed Income Bond is 4.07% gross/4.15% AER.
British Savings Bonds are new three-year fixed-rate Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds. They offer savers a guaranteed interest rate fixed over three years for investments between £500 and £1 million. The intention is for the new British Savings Bonds to be available for an extended period of time. They are available to purchase online at nsandi.com.
Like all savings from NS&I, money invested will be 100% secure, backed by HM Treasury, and invested back into supporting the UK through government financing.
Bim Afolami, Economic Secretary to the Treasury, said :
“This is a new opportunity for UK savers to benefit from the three-year fixed-rate British Savings Bonds knowing that their money is fully protected by HM Treasury. The Bonds will help to grow the savings culture in the UK while providing cost-effective financing for the government.”
NS&I Chief Executive, Dax Harkins, said:
“British Savings Bonds are there to help people save for the longer term and support their savings goals, safe in the knowledge that their investments are 100% protected. As with all savings with NS&I, money is invested back into supporting the UK through government financing.”
In the Spring Budget it was announced that NS&I’s Net Financing target for 2024-25 has increased to £9 billion (in a range of +/- £4 billion either side of this target).
Notes to editors
- NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to more than 24 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
- British Savings Bonds will be online-only with support for customers who are unable to transact online. Full information is available at www.nsandi.com .
- Guaranteed Growth Bonds are a lump sum investment that earns a fixed-rate of interest over a set period of time (called ‘investment term’). Guaranteed Growth Bonds are designed to be held for the full term. Interest is calculated daily and is added to the Bond on each anniversary of the investment.
- Guaranteed Income Bonds are a lump sum investment that pays out monthly income at a fixed-rate of interest over a set period of time (called ‘investment term’). Interest is calculated daily and is paid into the customer’s nominated bank account.
- Interest rates for off-sale Guaranteed Growth Bonds and Guaranteed Income Bonds are also increasing for customers with maturing bonds. Information is available here .
- Net Financing is the measure of the net change of NS&I funds, meaning total inflows from deposits, retention of maturing monies and capitalised and accrued interest, less the total outflows from withdrawals and interest or Premium Bonds prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.