A government-supported Investment Bond has just been introduced by National Savings and Investments (NS&I), with the following core features:
- The smallest deposit possible is £100.
- The account balance needs to be between £100 and £3,000.
- You must be aged 16 or over to apply.
- Only online applications are accepted, with a deadline of April 2018.
- Interest is fixed at 2.2% for three years, and this is paid annually, with no tax being deducted.
- There is a penalty on early withdrawals, equivalent to three months’ interest on the amount withdrawn.
Moneyfacts shows the NS&I Investment Bond as a leading option when it comes to interest rates. Similar bonds with three-year fixed terms offer an interest rate of just 1.24% on average. In addition, competing bonds tend to have higher minimum deposit requirements, usually starting at £1,000, and limits on the maximum account balance are typically much higher than NS&I’s cap of £3,000.
Find out more:
BWB Accountants Surrey
First Floor, 5 Park Court, Pyrford Road, West Byfleet, Surrey KT14 6SD
tel 01932 350117