National Savings 3 Year British savings Bonds launched today

The three-year fixed-rate British Savings Bonds announced by the Chancellor of the Exchequer in the Spring Budget are now on sale. The Guaranteed Growth Bond option is available at 4.15% gross/AER and the Guaranteed Income Bond is 4.07% gross/4.15% AER.

British Savings Bonds are new three-year fixed-rate Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds. They offer savers a guaranteed interest rate fixed over three years for investments between £500 and £1 million. The intention is for the new British Savings Bonds to be available for an extended period of time. They are available to purchase online at

Like all savings from NS&I, money invested will be 100% secure, backed by HM Treasury, and invested back into supporting the UK through government financing.

Is it a good deal for savers?

For savers with balances in excess of £85,000, the Financial Services Compensation Scheme (FSCS) limit, these bonds may be appealing in that you can deposit up to £1 million which is fully protected via HM Treasury.

Those with smaller balances can currently get a 3 year fixed rate bond paying 4.65% with Hampshire Trust Bank or Close Brothers Savings.

That extra 0.5% on the rate is worth £250 per year to someone with a £50,000 balance and £750 over the 3 year term.

For a saver with a £20,000 pot it’s £100 per year and £300 over 3 years, so worth looking at other fixed rate options.

Bim Afolami, Economic Secretary to the Treasury, said:

“This is a new opportunity for UK savers to benefit from the three-year fixed-rate British Savings Bonds knowing that their money is fully protected by HM Treasury. The Bonds will help to grow the savings culture in the UK while providing cost-effective financing for the government.”

NS&I Chief Executive, Dax Harkins, said:

“British Savings Bonds are there to help people save for the longer term and support their savings goals, safe in the knowledge that their investments are 100% protected. As with all savings with NS&I, money is invested back into supporting the UK through government financing.”  

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