Savings update: How NS&I’s new bonds compare

6 December 2017
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National Savings & Investments have relaunched its fixed-rate Guaranteed Growth Bonds and Guaranteed Income Bonds.  It is the first time they have been on sale for eight years.

The one-year bond pays 1.5% – or 1.45% if you take income monthly rather than annually.  If you tie your money up for three years, the rates are 2.2% and 2.15% respectively.

The one-year rate is attractive compared with big banks and building societies.  But newer banks pay higher rates with the top rate coming from Charter Savings Bank at 1.81%.

The three-year deal is among the top payers, beaten only by Ikano Bank’s 2.21%.  While, the top two-year rate is 2.06% from Secure Trust Bank.

On easy-access accounts Birmingham Midshires has raised the rate on its Internet Saver to a top 1.45% for both new and existing savers. The rate includes a bonus for the first 12 months. If you’re willing to limit the number of withdrawals you can make, Virgin Money has increased its Double Take e-Saver (Issue 2) account to 1.36%.  With this account you are limited to making just two withdrawals a year.

The best deal with no bonus or withdrawal limits comes from French-owned RCI Bank at 1.3% followed by Shawbrook Bank at 1.2%.  With RCI you are covered by the French deposit scheme which gives up to €100,000 (around £88,000), if the bank runs into trouble. With Shawbrook you come into our own Financial Services Compensation Scheme, which covers you up to £85,000.

The top easy-access Cash Isa rate comes from Bath Building Society at 1.3%, while on fixed rate deals Virgin Money pays 1.41% for one year. The best rate for two years is 1.72% from Charter Savings Bank.

Savings accounts to beat inflation

To beat inflation compromises need to be made as all of the small number of regular savings accounts that pay more than inflation require savers to have a current account with the provider.

Moneywise keeps tabs on the savings market has found there are accounts that currently beat inflation.

This article was written for our sister magazine Money Observer.

Read more on savings and cash Isas on Moneywise

Comments

In reply to by anonymous_stub (not verified)

Excellent news!

In reply to by anonymous_stub (not verified)

Please keep me informed .

In reply to by anonymous_stub (not verified)

I like your website for information.my65+bonds mature in February I want a safe investment bank after they have matured.

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