UK: NS&I relaunches popular savings bond

National Saving & Investments (NS&I) has relaunched its Guaranteed Growth/Income Bonds.

The bonds, which were last offered in 2009, come in either one year or three years fixed terms, with both offering competitive interest rates of 1.5% and 2.2% per annum, respectively.

The bonds can only be opened online but can be managed via the phone, or by post in addition to online. To open one of the bonds, consumers must deposit at least £500 and must maintain their balance at this level or higher to keep the bond open. A maximum deposit of £1M also applies. Bondholders who withdraw funds early will face a fee equivalent to 90 days interest on the amount withdrawn.

The bonds have been launched to help the NS&I reach its target of capturing £10Bn to £16Bn in deposits in the next tax year. The launch is also likely to help drive up the proportion of savings account holders with a fixed rate bond product, which currently sits at 12% according to RFi Group data. The NS&I HM Treasury guarantee fully protects savers investments.

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