Monday, December 4, 2017
A Little Boost for Savers...
NS&I reintroduces fixed term bonds...
NS&I has announced that for the first time since 2009, their 1 and 3 year guaranteed growth and income bonds are back on sale.
The announcement follows the rate increase of 0.25% on most of their accounts subsequent to the recent modest interest rate rise. Many banks have been slow to follow suit or have not passed on the full rise.
The maximum per holding is £1m per person per issue and the rates are as follows:
|Issue||Term||Gross Interest Rate|
|Growth Bond||1 year||1.50%|
|Income Bond||1 year||1.45%|
With the Bank of England’s latest forecasts predicting it will be up to 10 years before interest rates get back to around 2.5%, these are competitive rates with the added benefit of capital being 100% Treasury backed.
As you know we encourage all clients to hold a suitable cash reserve that typically covers any income shortfalls for up to three years and a peace of mind emergency fund cover that makes them feel comfortable too.
Please note - These new accounts are only a suitable home for cash reserves you do not anticipate needing to access over the term as early withdrawals suffer 90 days loss of interest. If you require instant access then more suitable accounts are available.
Further details can be found on NS&I's official website:
You can apply online, by phone or by post. As always just call us if you have any queries.