NS&I issues warning to people who have Growth or Income Bonds

NS&I has reduced interest rates on some fixed-term products. Interest rate reductions have been confirmed for some of NS&I’s fixed-term products, effective from today, 11 September 2024, according to the financial provider.

Changes will ensure NS&I’s interest rates are positioned appropriately in the wider market and help NS&I to balance the interests of its savers, taxpayers and broader financial service sector. New Issues of NS&I’s 2-year, 3-year and 5-year British Savings Bonds have gone on sale today, 11 September 2024, with new interest rates reflecting the changing savings market.

British Savings Bonds are fixed-term Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds. The new interest rate on the 2-year Growth option is 4.25% gross/AER. The new interest rate on the Income option is 4.17% gross / 4.25% AER.

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The new interest rate on the 3-year Growth option is 4.00% gross/AER and the Income option is 3.93% gross / 4.00% AER. The new interest rate on the 5-year Growth option is 3.90% gross/AER and the Income option is 3.83% gross / 3.90% AER.

NS&I Chief Executive, Dax Harkins, said: “Our 2-, 3- and 5-year fixed-term Bonds continue to offer savers increased choice, a fair return and longer-term security in a changing market. These changes ensure our interest rates are set at an appropriate position and continue to balance the interests of savers, taxpayers and the stability of the broader financial services sector.”

Guaranteed Growth Bonds are a lump sum investment that earns a fixed rate of interest over a set period of time (called ‘investment term’). Guaranteed Growth Bonds are designed to be held for the full term. Interest is calculated daily and is added to the Bond on each anniversary of the investment.

Guaranteed Income Bonds are a lump sum investment that pays out monthly income at a fixed rate of interest over a set period of time (called ‘investment term’). Interest is calculated daily and is paid into the customer’s nominated bank account.