Those already holding the bonds can still renew them when they reach their maturity date – but at a lower rate
National Saving and Investment (NS&I) has withdrawn its popular Guaranteed Growth and Guaranteed Income Bonds from general sale.
Those already holding the bonds can still renew them when they reach their maturity date – but at a lower rate.
The rate on its one-year Guaranteed Growth Bond falls from 1.5% to 1.25%. The three-year bond goes down from 1.95% to 1.7%.
The one-year Guaranteed Income Bond drops to 1.2% from 1.45%. While, the three-year bond now pays 1.65% instead of 1.9%.
At the same time, it has reduced the rates on its two- and five-year Guaranteed Growth Bonds, already closed to new savers but available to those who want to renew, to 1.45% and 2% respectively.
Fixed Interest Savings Certificate rates are also down - by 0.25 percentage points to 1.3% for two years and 1.9% for five years.
Those with a Guaranteed Growth or Income Bond or Fixed Interest Savings Certificate which come to the end of their term on or before 5 October will receive the old higher rates when they come to renew it – but only if they pick the same term.
However, if they choose a different term on bonds maturing before 6th October, they will lock in at the lower rates.
Any savers with bonds which mature on or after 6 October will see automatically be offered the lower rate at renewal.
This article first appeared on our sister website Money Observer