National Savings and Investments (NS&I) shocked the UK savings industry this week when it launched its highest ever rate of 6.20% for a 1 Year Guaranteed Growth Bond.
The deal went straight to the top of the best buy tables and is the highest rate by some margin, with 6.00% the next best rate on the market.
NS&I has an annual financing target set by the government and has been struggling to attract enough new money, in what has become a highly competitive UK savings space.
This move has thrown down the gauntlet to savings providers but it’s unlikely that any players will be able to compete with 6.20%.
However, this aggressive move is likely to prove an attractive option with cash savers eager to bag the very best rate they can.
Essential details at a glance
What’s the interest rate?
Issue 72: 6.20% gross/AER, fixed for 1 year
Can I take money out?
No, you cannot take money out until the Bond reaches the end of its term
Is the interest taxable?
Yes, in the tax year your Bond matures
How much can I start with?
£500 for each Bond you buy
What’s the max. I can save?
£1 million per person in this Issue