Overview
- New issues of Guaranteed Growth and Income Bonds now pay 4.20% AER for one year, 4.10% for two years, 4.16% for three years and 4.15% for five years.
- The higher rates are open to new savers and those rolling over maturing accounts, with investments from £500 up to £1 million per issue and no early access allowed.
- NS&I, which serves more than 24 million customers, offers a 100% government guarantee on deposits, a feature seen as attractive for larger balances.
- The move runs counter to a broader trend of rate trims after the Bank of England held base rate at 4%, and experts note better fixed deals remain available at some competitors such as LHV Bank and JN Bank.
- Premium Bonds’ prize fund rate stays at 3.6% after cuts earlier this year, with odds of 22,000 to one per £1 Bond, prompting advice for some holders to review whether guaranteed interest suits them better.