New issues of Guaranteed Growth and Guaranteed Income Bonds
New interest rates for NS&I’s 1, 2, 3 and 5-year Guaranteed Growth Bonds and Guaranteed Income Bonds Up to 3.95% AER available on 1-year terms and 4.25% AER on 2-year NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds are exclusively available through nsandi.com, freephone and post
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 freephone3, 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.
| New fixed rates (New rates effective from 26 October 2009) | New rate (gross1 ) (change in brackets) | AER2 |
|---|---|---|
| 1-year Guaranteed Growth Bonds (Issue 48) | 3.95% (+2.95%) | AER same as gross |
| 2-year Guaranteed Growth Bonds (Issue 41) | 4.25% (+0.50%) | AER same as gross |
| 3-year Guaranteed Growth Bonds (Issue 42) | 4.40% (+2.65%) | AER same as gross |
| 5-year Guaranteed Growth Bonds (Issue 39) | 4.60% (+2.00%) | AER same as gross |
| 1-year Guaranteed Income Bonds (Issue 48) | 3.85% (+2.85%) | 3.92% |
| 2-year Guaranteed Income Bonds (Issue 41) | 4.15% (+0.50%) | 4.23% |
| 3-year Guaranteed Income Bonds (Issue 42) | 4.30% (+2.60%) | 4.39% |
| 5-year Guaranteed Income Bonds (Issue 39) | 4.50% (+2.05%) | 4.59% |
Notes to editors
- Gross means the taxable rate of interest without the deduction of UK Income Tax
- AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year the rate quoted and the AER will be the same
- NS&I has also recently changed its general enquiries number. Customers will now need to call the freephone number 0500 007 007* to contact NS&I directly. The former chargeable enquiries 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. * Calls from mobiles may not be free. Calls may be recorded. Calls will be taken by one of NS&I’s award-winning UK customer service team, available every day from 7am till midnight.