NS&I has made available new issues of one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds with interest rates of 6.20% gross/AER and 6.03% gross/6.20% AER respectively.
NS&I said these are the highest ever interest rate for Guaranteed Growth Bonds and Guaranteed Income Bonds since they first went on sale in 2008.
The new issues are available to new and existing customers.
Interest rates are also being increased for existing customers with two, three and five-year Bonds when their current holding reaches maturity.
The bonds are backed by the Treasury and Economic Secretary to the Treasury Andrew Griffith, said: “It’s vital that savers are able to benefit from recent interest rate rises, so I’m delighted that NS&I is releasing new Issues of Guaranteed Growth Bonds and Guaranteed Investment Bonds at over 6% – the highest rate since they were launched. For further peace of mind, the Treasury provides a 100% guarantee on these savings”.
NS&I chief executive, Dax Harkins, added: “It was great to be able to bring back on sale our one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds in February last year. Today, we are able to offer new Issues with an improved interest rate for customers wanting the certainty of knowing how much they will be earning on their savings for one year.
“At the same time, existing customers with maturing Bonds can choose to invest at new higher rates for two, three and five-year Guaranteed Growth Bonds and Guaranteed Income Bonds.”
Savers into the new one year issues will need a minimum investment of £500 and a maximum of £1 million in each Issue. After one year, savers will have the choice to withdraw their cash or reinvest.
The two, three and five-year products are only available to existing customers with maturing products and are not open to new customers.
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