NS&I Guaranteed Growth Bonds and Guaranteed Income Bonds

NS&I (National Savings and Investments) is releasing new Issues of its Guaranteed Growth Bonds and Guaranteed Income Bonds with rates up to 4.60% AER with immediate effect.

The interest rates on NS&I's other savings products will remain unchanged.

John Prout, Director of Customer Sales and Retention, NS&I, said: "The new Issues of our Guaranteed Growth Bonds and our Guaranteed Income Bonds are good news for savers. Customers can choose to invest between £500 and £1 million in our 1, 2, 3 or 5-year Bonds. With the new rates starting at 3.85% gross/ 3.92% AER for a 1-year Bond, we hope that the new Issues will be highly attractive to customers who are looking for a guaranteed fixed rate of interest, coupled with 100% security for their money, as NS&I is backed by HM Treasury."

NS&I recently announced changes to the way customers can invest in NS&I's Guaranteed Growth Bonds and Guaranteed Income Bonds. From today these products will only be available directly from NS&I (by freephone, online or by post) and no longer available through the Post Office.

NS&I and the Post Office have jointly agreed to this change, which is in part a reflection of the development of the Post Office's own brand of savings products. These include Post Office Growth Bonds - a very similar range of fixed rate savings bonds to the two NS&I products. The decision also reflects NS&I's desire to develop its direct sales channels. In addition to this, the move to direct channels is more cost-effective which means NS&I can offer higher rates of interest.

The Post Office will continue to offer a wide range of other NS&I savings products - including Premium Bonds and Savings Certificates - which can be purchased over the counter.