Eligible investors can potentially earn a 5.15% interest rate on fixed bonds offered by NS&I, but let's check if you qualify.

In a move to boost savings for its customers, National Savings and Investments (NS&I) has launched new fixed bonds offering some of the highest rates on the market. The new products include a one-year fixed Guaranteed Growth Bond and Guaranteed Income Bond, both offering a competitive 5.15% return.

Last summer, approximately 225,000 people purchased NS&I's one-year bond, and with those bonds maturing now, customers may become eligible for the current best market rate of 5.15%. However, it's important to note that this rate is only available to existing NS&I customers whose Guaranteed Growth Bond is reaching maturity.

The Guaranteed Growth Bond pays interest annually, while the Guaranteed Income Bond pays interest monthly. Both products are backed by the Treasury, allowing you to save up to £1million.

For those who prefer longer-term investments, NS&I has also launched new fixed bonds with a two-year and five-year fixed-term. If you choose to fix for a longer term than one year, you will earn the following rates: 2 year fixed - 4.6% AER, 3 year fixed - 3.35% AER, 5 year fixed - 4.1% AER.

The current best-fixed savings return on the market is offered by NS&I, making these new bonds a potential high-demand product. NS&I has confirmed that it could change the rate at any time.

Interest earned from both accounts is not compounded and paid into a separate nominated account. For instance, if you save £20,000 in a Guaranteed Growth Bond or Guaranteed Income Bond, a basic-rate taxpayer would earn £1,024 in interest, while a higher-rate taxpayer would earn £818. Similarly, if you save £50,000, a basic-rate taxpayer would earn £715 in interest, while a higher-rate taxpayer would earn £1,745.

It's worth noting that other top one-year fixed savers on the market right now are Ford Money, Habib Bank Zurich, and Close Brothers, all offering 5% AER. However, NS&I's 5.15% rate is the only one-year fixed bond above the current 5% base rate.

Customers will receive a reminder 40 days before their bond matures. After the 30-day reminder, customers can decide to enroll again for a 5.15% rate or withdraw their money.

With these new fixed bonds, NS&I is providing a valuable opportunity for customers to boost their savings with competitive rates. However, as with any investment, it's essential to consider your financial situation and goals before making a decision.

Eligible investors can potentially earn a 5.15% interest rate on fixed bonds offered by NS&I, but let's check if you qualify.