NS&I has this week (6th March 2018) launched Issue 57 of its popular three year Guaranteed Growth and Income Bonds, paying a less competitive rate of 1.95% gross/AER for the growth bond and 1.90% gross/1.92% AER for the income bond.
This will be disappointing for many who were not in a position to take advantage of the previous issue, but it’s not wholly unexpected, as the rate was very competitive. Generally speaking, NS&I depends on its unique security (all money invested with NS&I is 100% secure, because NS&I is backed by HM Treasury) to raise the funds it requires, not market-leading rates.
Those with a 3-year 65+ Guaranteed Growth Bond maturing over the next couple of months need not be concerned however, as they will still be able to roll over into the previous issue 56, paying 2.20% gross/AER, if they are happy to tie their funds up for a further three years.
In addition, the Investment Guaranteed Growth Bonds will remain on sale until 10th April, paying 2.20% gross/AER, fixed for three years – on deposits between £100 and £3,000.
The good news is that better rates can be found elsewhere – although you may need to try out a provider that you are not as familiar with. However, as long as they are part of the UK Financial Services Compensation Scheme (FSCS) or European equivalent, then there is no reason not to at least consider them.
For example, Vanquis Bank is offering 2.30% gross/AER on its 3 Year Fixed Rate Bond. On a balance of £85,000 that means around £930 additional gross interest over the term, allowing for compounded interest.
Check out our Best Buy tables to see what other rates are available or call us on 0800 011 9705 to talk through your options with a savings expert.
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