Overview
- NS&I launched new issues on Tuesday 6 October and raised Growth Bond AERs to 4.99% for one year, 5.07% for two years, 5.10% for three years and 5.17% for five years.
- Guaranteed Income Bonds carry the same AERs but slightly lower gross rates and pay interest monthly rather than at maturity.
- Each Issue requires a minimum £500 investment and allows up to £1 million per person, and funds cannot be withdrawn before the term ends.
- NS&I said the increases respond to wider savings-market moves and will help meet its Net Financing target, and its retail director stressed deposits are 100% backed by HM Treasury.
- While the rate rise narrows the gap with bank and building-society products, analysts note NS&I’s new offers sit outside the top-rate tables and savers should compare options and keep some money accessible for emergencies.