The NS&I Investment Guaranteed Growth Bond gives people access to a rate of 2.2% for between £100 and £3000 of their savings. The investment term is three years; savers can withdraw their money earlier although penalties will apply.
The Chancellor announced the investment bond in his Autumn Statement in 2016. The rate of 2.2%, fixed for the three years, was confirmed at last month’s Budget.
The investment bond can only be purchased online, at nsandi.com, to give customers a simple way to apply for the bond and to manage their investment. This also reflects the changing nature of customer behaviour as more money is deposited online with NS&I than via any other individual sales channels.
Economic Secretary to the Treasury, Simon Kirby said: “From raising the ISA threshold to introducing the new Lifetime ISA, this government is committed to creating a nation of savers.
“With the average 3 year fixed term product having a rate of 1.24%, the new offering is significantly higher than others currently on the market.”
In the decade before 2009, the average 1-year fixed term savings rate was 5.0%. But since then the average has been 1.9%, and is currently 0.6%.
Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest.