NS&I begins sale of British Savings Bonds today paying 4.15% AER - IFA Magazine
NS&I Offers 3-year Fixed-rate Savings Bonds At 4.15% Gross/AER Post-Budget
This morning, NS&I reported that the British Savings Bonds with a fixed rate of three years, which were announced by the Chancellor of the Exchequer in the Spring Budget, are now available for purchase. The two options include the Guaranteed Growth Bond, which offers a 4.15% gross/AER rate, and the Guaranteed Income Bond, with a rate of 4.07% gross/4.15% AER.
The British Savings Bonds are recently launched fixed-rate investment options from NS&I's Guaranteed Growth Bonds and Guaranteed Income Bonds, with a span of three years. They promise a steady interest rate for any amount between £500 to £1 million. The British Savings Bonds will be up for sale for quite some time and can be bought via nsandi.com.
Similar to any savings made with NS&I, investments made in British Savings Bonds will be completely safe and guaranteed by HM Treasury. The invested funds will then be used to boost the UK's economy through government financing.
According to Bim Afolami, who holds the position of Economic Secretary to the Treasury, the following statement was made:
UK savers now have the chance to take advantage of the British Savings Bonds, which offer a fixed-rate for three years and come with full protection from the HM Treasury. These Bonds will not only encourage the UK's savings culture, but also provide a budget-friendly way for the government to receive financing.
The head of NS&I, Dax Harkins, stated:
British Savings Bonds are designed to aid individuals in their desire to save over a longer stretch of time and achieve their savings objectives. Moreover, by investing in these bonds, they can feel secure in the knowledge that their investments are fully safeguarded. NS&I ensures that money is channeled towards backing the UK through financing by the government, which is a characteristic of all its savings endeavors.
During the release of the Spring Budget, it was proclaimed that NS&I's objective for Net Financing in 2024-25 has risen to £9 billion (with a potential fluctuation of £4 billion in either direction of the target).
