Rachel Springall Spring Budget Britain county Bond record experts security Provident UPS COST Markets Rachel Springall Spring Budget Britain county Bond

People can now buy new British Savings Bonds announced in Spring Budget

Reading now: 847

British Savings Bonds which were unveiled in the Spring Budget, have now gone on sale. However, finance experts pointed out that the 4.15 per cent rate on offer with the three-year products sits below the top deals available in the wider savings market, meaning the products "risk disappearing without a trace".British Savings Bonds are new three-year fixed-rate issues of Treasury-backed savings giant NS&I's Guaranteed Growth Bonds and Guaranteed Income Bonds.

The Guaranteed Growth Bond option is available at 4.15 per cent gross/AER (annual equivalent rate) and the Guaranteed Income Bond option is at a rate of 4.07 per cent gross/4.15 per cent AER.They offer savers a guaranteed interest rate fixed over three years for investments between £500 and £1 million.

Money cannot be withdrawn until the end of the term. NS&I said the intention is for the new British Savings Bonds to be available for an extended period of time and are available to buy online at nsandi.com.As with NS&I savings generally, the money invested has 100 per cent security, backed by the Treasury, and is invested back into supporting the UK through Government financing.Savers looking for a three-year deal can find a range of options with rates above 4.60 per cent AER in the wider market, according to Moneyfactscompare.co.uk.Higher rates are available on shorter-term bonds; for example, savers can get 5.25% AER for a one-year deal or 5.10 per cent for a two-year deal.Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said the NS&I bonds "may well appeal to savers who are happy to forgo higher interest rates available elsewhere on equivalent term bonds to invest their cash, as NS&I products provide 100 per cent capital security."Popular products

Read more on dailyrecord.co.uk
The website celebsbar.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News