Savings update: NS&I's Budget bond set to launch online only

Published by Sylvia Morris on 14 March 2017.
Last updated on 14 March 2017

piggy bank abacus

National Savings & Investments will launch a three-year fixed rate bond next month at 2.2%. The Investment Guaranteed Growth Bond will be open to those aged 16 or over with a bank account and will be available online only.

You can put in between £100 and £3,000 and the bond will be on sale for 12 months. Over the full three-years, you will see a total £202.39p interest on £3,000. The actual launch date is yet to be confirmed. Read Moneywise's verdict on how competitive the new bond is likely to be.

The top one-year fixed rate bond at 1.8% comes from Atom Bank. To open an account savers must use an app on their phone or tablet. The next best deal is 1.62%, from OakNorth Bank.

On the high street, the best deal comes from the new Newcastle Building Society bond at 1.4%. For two years, you'll earn 2.1% with Atom Bank, 1.66% from OakNorth Bank and 1.65% from United Trust Bank. Currently the top three-year deals come from Atom at 2.2% and Secure Trust at 2%.

Top easy-access and fixed-rate deals

On easy-access accounts internet-based French bank RCI pays a top 1.1% on its Freedom Account. The new Online Bonus Saver account from Skipton Building Society, launching on Tuesday (14 March), will pay 1.02% including a 0.21% bonus for 12 months.

On tax-free cash Isas, the top easy-access cash Isa rate comes from Paragon Bank Limited Edition Easy Access Cash Isa at 1.05%.

Virgin Money Defined Access Isa pays 1.01% but limits you to making three withdrawals a year. Both accept transfers from other providers. Skipton Bonus Cash Isa pays 0.9% including a 0.25% bonus for a year.

On one-year fixed rate deals Newcastle Building Society's new account at 1.2% tops the best buy tables. For two years, you can earn 1.26% with Principality Building Society.

This story was originally written for our sister magazine, Money Observer.

Leave a comment