Overview
- NS&I launched new issues of its fixed-term British Savings Bonds and Income Bonds on January 6 with lower rates, including 1-year Growth at 4.07% AER, 2-year at 3.98%, 3-year at 4.02% and 5-year at 4.05%.
- The Treasury-backed provider said the changes reflect wider market moves and will help it meet its net financing goal, following the Bank of England’s December base rate cut to 3.75%.
- These fixed-term bonds require at least £500 to open, allow up to £1 million per person per issue, do not permit early withdrawals, and customers with maturity letters keep the quoted rate.
- Premium Bonds’ prize fund rate remains 3.6% with odds of 22,000 to 1 per £1 Bond, and NS&I is urging savers to update details and use its prize checker, with 2.6 million unclaimed prizes worth nearly £110 million reported in October.
- January’s Premium Bonds draw produced two £1 million jackpots won by holders with the £50,000 maximum, as regional data continue to highlight hotspots for large prizes.