- Investment Guaranteed Growth Bonds offer a market-leading rate to savers aged 16 or over.
- The Bonds will be on sale for 12 months from today.
- Available online only at nsandi.com.
The new Investment Guaranteed Growth Bonds, announced by the Chancellor in the November 2016 Autumn Statement, have been launched today and are now on sale for 12 months, available online only at nsandi.com.
As confirmed by the Chancellor in the Budget on 8 March 2017, the Bonds offer a market-leading rate of 2.20% gross/AER, fixed over a 3-year term.
The Bonds are available to those aged 16 or over, with a minimum investment of £100 and a maximum limit of £3,000 per person.
Key features of the Bonds are as follows:
- 3-year fixed term Bond at 2.20% gross/AER.
- On sale for 12 months and available to buy and to manage online only at nsandi.com.
- Investment limits apply: minimum of £100 and maximum of £3,000.
- Designed to be held for the whole term, but can be cashed in early with a penalty equivalent to 90 days’ interest on the amount cashed in.
- Investments can be made individually or jointly.
- Fixed rates are guaranteed for the whole term, with interest added on each anniversary. This means customers will benefit from compound interest.
- Interest earned without deducting any tax. However, the interest is taxable so it will count towards the customer’s Personal Savings Allowance.
Notes to Editors
- NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
- Investment Guaranteed Growth Bonds are a specific policy measure, announced in the 2016 Autumn Statement and are distinct from NS&I’s normal activity. The cost of raising finance through this product over gilts will not be reflected in the Value Indicator calculation for NS&I.
- “Gross” is the taxable rate of interest without the deduction of UK Income Tax.
- AER (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.