NS&I 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.

NS&I fixed term bonds back on sale

Guaranteed Growth Bonds and Guaranteed Income Bonds have not been on general sale since 2009 but both the 1 and 3-year products 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 £1m 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.

Commenting, 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.”

Both types of bond are 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. Investors 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. The fixed rates are guaranteed for the whole term, with interest calculated daily and added on each anniversary.

 

Past performance is not a reliable guide to future returns and tax rules can change over time. 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. 

 

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