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  • There is a penalty on early withdrawals, equivalent to three months’ interest on the amount withdrawn.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:

https://www.gov.uk/government/news/new-market-leading-bond-launches-today

https://www.nsandi.com/investment-guaranteed-growth-bonds?ccd=NAVQAA

https://moneyfacts.co.uk/savings/3-year-fixed-rate-bonds/

 

BWB Accountants Surrey

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