NS&I reduces interest rate for new customers purchasing 3-year Guaranteed Growth Bonds and Guaranteed Income Bonds

NS&I is reducing the interest rate for 3-year terms of Guaranteed Growth Bonds and Guaranteed Income Bonds by 25 basis points from today (6 March 2018). A new Issue of 3-year Guaranteed Growth Bonds will be available at 1.95% gross/AER and a new 3-year Issue of Guaranteed Income Bonds will pay 1.90% gross (1.92% AER). The rate on the 1-year terms of both products will remain unchanged.

Product Current Issue (Issue 56) New Issue (Issue 57) Effective from
Guaranteed Growth Bonds: 3-year term 2.20% gross/AER, guaranteed for three years 1.95% gross/AER, guaranteed for three years 6 March 2018
Guaranteed Income Bonds: 3-year term 2.15% gross / 2.17% AER, guaranteed for three years 1.90% gross / 1.92% AER, guaranteed for three years 6 March 2018

Jill Waters, Retail Director, NS&I, said:

NS&I was delighted to bring these highly popular Bonds back onto the market at the start of December and demand for the Bonds in the first three months has been high.”

“It is always a difficult decision to reduce rates but these changes will allow us to manage demand in order to achieve our Net Financing target, while continuing to deliver positive value to taxpayers. The new rates present a fair offer, and customers continue to benefit from a high holding limit and 100% security on all deposits.

“Additionally customers may still invest in the special Issue of Investment Guaranteed Growth Bondsfor three years at 2.20% on investments up to £3,000 until 10 April 2018.”

Customers who have maturing 3-year Guaranteed Growth Bonds and 3-year 65+ Guaranteed Growth Bonds will be able to roll over their investment for another 3-year term at a rate of 2.20% gross/AER – as stated in their maturity pack.

Investment Guaranteed Growth Bonds will remain on sale until 10 April 2018 at the rate of 2.20% gross/AER, fixed for three years. These Bonds, available online only, are open to people aged 16 and over and have a minimum investment of £100 and a maximum investment of £3,000.

Customers who wish to invest in either Guaranteed Growth Bonds or Guaranteed Income Bonds will benefit from a maximum holding of £1 million per Issue, or £2 million held jointly. As with all of our products, customers will also benefit from our 100% HM Treasury security guarantee on all holdings.

Both 1 and 3-year terms of Guaranteed Growth Bonds and Guaranteed Income Bonds are available to purchase online only through nsandi.com. The Bonds can be managed online, by phone and by post and are open to people aged 16 and over.


Notes to Editors

  1. NS&I’s Net Financing target for 2017-18 was revised at the Autumn Budget on 22 November 2017 to £8 billion (in a range of £3 billion either side of this, from £5 billion to £11 billion).
  2. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
  3. Gross is the taxable rate of interest without the deduction of UK Income Tax.
  4. 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 illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.
  5. NS&I brought Guaranteed Growth Bonds and Guaranteed Income Bonds back on to sale on 4 December 2017. More details here
  6. Information on our product range can be found here.
  7. For further information please contact the NS&I media team.