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 for 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 one, two, three or five-year Bonds. With the new rates starting at 3.85% gross/3.92% AER for a one-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 also recently announced changes to the way customers can invest in NS&I's Guaranteed Growth Bonds and Guaranteed Income Bonds. These products will now 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.
Notes to editors
* AER stands for Annual Equivalent Rate
** NS&I has changed its general enquiries number. Customers will now need to call the freephone number 0500 007 007 to contact NS&I directly. The previous number - 0845 964 5000 will continue to operate but customers may incur a charge from their provider. NS&I's sales line will continue to operate through 0500 500 000.
About NS&I
NS&I is one of the UK's largest savings accounts providers with almost 27 million customers and over £96 billion invested. It is best known for premium bonds, but also offers a Direct ISA, guaranteed growth bonds, guaranteed equity bonds and Children's Bonus Bonds in its range. All products offer 100% security, because NS&I is backed by HM Treasury.
Gill Stephens, National Savings and Investments, 375 Kensington High Street, London, W14 8SD, 020 7348 9301, www.nsandi.com
