NS&I increases interest rate for 1-year fixed-term guaranteed growth and income Bonds

NS&I has reported today that new Issues of its 1-year fixed-term Guaranteed Growth Bonds and Guaranteed Income Bonds have gone on sale today at a higher interest rate.

British Savings Bonds are fixed-term Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds. They are available to new customers, and those with existing Bonds which are due to mature. The new interest rate on the 1-year Growth option is 4.18% gross/AER, and the Income option is 4.11% gross / 4.18% AER.

Andrew Westhead, NS&I Retail Director, said: “I am pleased that we can offer savers – both new, and those with our existing 1-year Bonds which are about to mature – this new opportunity to save.

“In launching this new Issue, NS&I continues to balance the interests of its savers, taxpayers and the broader financial services sector – and to work towards its annual Net Financing target.”

Guaranteed Growth Bonds and Guaranteed Income Bonds are available to customers wanting a guaranteed rate for a fixed-term 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 Funds cannot be withdrawn early with fixed-term accounts.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.