British Savings Bonds: NS&I reveals the rate it’ll pay on the new accounts

National Savings and Investments has today revealed the rate it will be paying on its new British Savings Bonds.

The three-year fix will pay 4.15 per cent. The bonds were announced by the Chancellor in the Budget and are now available to open on NS&I’s website.  

There are two versions of the bond available – Guaranteed Growth Bonds which pay 4.15 per cent over three years and Guaranteed Income Bonds which pay 4.07 per cent over three years. 

The latter allows savers to take the interest paid out each month. Neither accounts are tax free.  

The bonds are three-year versions of NS&I’s best-selling one-year Guaranteed Growth and Income bonds, which paid a far higher rate of 6.2 per cent. These were pulled from sale in October. 

NS&I said it intends for the three-year bonds to be on sale for an extended period of time. 

The minimum investment in the bonds is £500 and the maximum is £1million in each issue. 

The accounts are online-only, and are not available to be invested in via phone or post. 

However, on its website, NS&I says: ‘It is designed to be invested in online. However, if you can’t invest online, please call us and we’ll let you know your options.’

Bim Afolami, Economic Secretary to the Treasury, said: ‘This is a new opportunity for savers to benefit from the three-year fixed-rate British Savings Bonds knowing that their money is fully protected by the Treasury. 

‘The Bonds will help to grow the savings culture in the UK while providing cost-effective financing for the Government.’

Dax Harkins, NS&I chief executive, said: ‘British Savings Bonds are there to help people save for the longer term and support their savings goals, safe in the knowledge that their investments are 100 per cent protected. 

‘As with all savings with NS&I, money is invested back into supporting the UK through government financing.’