National Savings & Investments (NS&I) has relaunched its Guaranteed Growth and Income Bonds, with a one and three year guaranteed growth and income bonds.
The Guaranteed Growth and Income Bonds are back on general sale for the first time since 2009 and can only be opened online via www.nsandi.com.
- The 1 year Guaranteed Growth Bond will pay an interest rate of 1.50% gross
- The 3 year Guaranteed Growth Bond paying interest of 2.20% gross/AER.
- The 1 year Guaranteed Income Bond will pay an annual interest rate of 1.45% gross
- The 3 year Guaranteed Income Bond will pay interest of 2.15% gross.
- Minimum investment is £500.
- Maximum investment is £1 million.
- You must be over age 16.
Savers will also benefit from NS&I's 100% HM Treasury guarantee on the full investment up to £1 million.
These Guaranteed Bonds are designed to be held for the whole term of one or three years. However they can be cashed in early with a penalty equivalent to 90 days interest on the amount cashed in. In order to keep the Bond open you must keep a minimum of £500 in your Bond.
The government is offering 100% protection on investments up to £1 million on both the Guaranteed Growth and Income Bonds. These products may be suitable for savers who are seeking security and want to know exactly the return they'll get.
Alternative options for savers seeking security is to invest up to £85,000 in numerous bank or building society accounts. By doing this savers will be protected under the £85,000 limit of the Financial Services Compensation Scheme.