Menu Search

Adviser Centre

Another boost for savers as NS&I puts fixed term Bonds back on sale

NS&I has reintroduced 1-year and 3-year Guaranteed Growth Bonds and Guaranteed Income Bonds to general sale.

Guaranteed Growth Bonds and Guaranteed Income Bonds have not been on general sale since 2009 but both 1 and 3-year Guaranteed Growth Bonds and Guaranteed Income Bonds will now be available to purchase online-only through nsandi.com

The Bonds can be managed online, by phone and by post and will be open to people aged 16 and over; with a minimum investment of £500 and a maximum limit of £1 million per person per Issue.

The 1-year Guaranteed Growth Bond will pay an interest rate of 1.50% gross/AER, while the 3-year Bond will pay 2.20% gross/AER.

The 1-year Guaranteed Income Bond will pay an interest rate of 1.45% gross/1.46% AER, and the 3-year Bond will pay 2.15% gross/2.17% AER.

Ian Ackerley, Chief Executive, NS&I, said:

“We are really pleased to be able to bring Guaranteed Growth Bonds and Guaranteed Income Bonds back on sale, which is another boost to savers following rate increases to our variable rate products, including Premium Bonds, on 1 December.

“Savers can already invest up to £3,000 in the 3-year Investment Guaranteed Growth Bond, which is on sale until April 2018. These Issues of Guaranteed Growth Bonds and Guaranteed Income Bonds will also help those who want a 1-year investment or who want to invest additional savings for three years.

“As well as being able to invest up to £1 million per person, per Issue in our 1 or 3-year Bonds, savers will also benefit from NS&I’s 100% HM Treasury guarantee.”

Guaranteed Growth Bonds

Product Interest rate (gross/AER)
Guaranteed Growth Bonds 1-year 1.50% gross/AER
Guaranteed Growth Bonds 3-year 2.20% gross/AER

Guaranteed Income Bonds

Product Interest rate (gross/AER)
Guaranteed Income Bonds 1-year 1.45% gross/1.46% AER
Guaranteed Income Bonds 3-year 2.15% gross/2.17% AER
 

Key features of Guaranteed Growth Bonds are as follows:

  • 1-year fixed rate Bond at 1.50% gross/AER. 3-year fixed rate Bond at 2.20% gross/AER.
  • Available to buy online at nsandi.com and manage online, by phone and by post.
  • Investment limits apply: minimum of £500 and maximum of £1 million per person per Issue.
  • Designed to be held for the whole term, but can be cashed in early with a penalty equivalent to 90 days’ interest on the amount cashed in. You must keep a balance of at least £500 to keep the Bond open.
  • Investments can be made individually or jointly, and can be held in Trust.
  • Fixed rates are guaranteed for the whole term, with interest calculated daily and added on each anniversary.
  • Interest earned without deducting any tax. However, the interest is taxable so it will count towards the customer’s Personal Savings Allowance.

Key features of Guaranteed Income Bonds are as follows:

  • 1-year fixed rate Bond at 1.45% gross/1.46% AER. 3-year fixed rate Bond at 2.15% gross/2.17% AER.
  • Available to buy online at nsandi.com and manage online, by phone and by post.
  • Investment limits apply: minimum of £500 and maximum of £1 million per person per Issue.
  • Designed to be held for the whole term, but can be cashed in early with a penalty equivalent to 90 days’ interest on the amount cashed in. You must keep a balance of at least £500 to keep the Bond open.
  • Investments can be made individually or jointly, and can be held in Trust.
  • Fixed rates are guaranteed for the whole term, with interest calculated daily and paid once a month.
  • Interest earned without deducting any tax. However, the interest is taxable so it will count towards the customer’s Personal Savings Allowance.

Notes to Editors

  1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
  2. Gross is the taxable rate of interest without the deduction of UK Income Tax.
  3. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.
  4. Information on our products can be found here.
  5. For further information please contact the NS&I media team.

Subscribe for news updates

News updates offer the quickest, easiest way to stay up to date with the latest offers on our products and new Issue launches.