NS&I: All you need to know about new versions of British Savings Bonds
The provider said the announcement is in response to changes in the wider market.
British Savings Bonds are fixed-term issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds.
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Hide AdGuaranteed Growth Bonds are a lump sum investment that earns a fixed rate of interest over a set period of time. Interest is added to the bond on each anniversary of the investment.
Guaranteed Income Bonds are also a lump sum investment and they pay out a monthly income at a fixed rate of interest over a set period of time.
NS&I’s new two-year Guaranteed Growth Bonds and Guaranteed Income Bonds have a rate of 3.85 per cent AER (annual equivalent rate). The previous rate was 4.00 per cent.
Its new three-year Guaranteed Growth Bonds and Guaranteed Income Bonds will pay 3.88 per cent AER. The previous rate was 4.10 per cent.
The new five-year Guaranteed Growth Bonds and Guaranteed Income Bonds will pay 3.84 per cent AER. The previous rate offered was 4.06 per cent.
There is no change to one-year British Savings Bonds.
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