Rates announced for NS&I's new bonds

As previously announced on 14 January 2008, NS& I is to launch two new fixed rate Bonds on 23 February 2008.

The two new Bonds, Guaranteed Income Bonds and Guaranteed Growth Bonds, will replace NS& I's Fixed Rate Savings Bond, providing a clearer, simpler choice for customers. Customers with savings invested in Pensioners Guaranteed Income Bonds and Capital Bonds, which will close to new sales on 23 February, will also be offered the option of transferring to the new Bonds when their current investments mature.

The Guaranteed Income Bond offers customers the opportunity to receive their interest as a monthly income whilst with the Guaranteed Growth Bond customers will receive their interest at the end of their chosen investment term. Fixed Rate Savings Bonds will be withdrawn from sale to new customers from 23 February 2008.

Both the new Bonds will offer customers the opportunity to invest between £500 and £1 million in a fixed rate bond with guaranteed rates of interest of between 3.85-4.05%, for either one, three or five year terms. NS& I prices its fixed rate products according to a number of factors, the principal factor being the return on gilts.

For further information, visit nsandi.com.