Savvy NS&I fixed bond holders might secure a high-yield 5.15% savings option

Savvy NS&I fixed bond holders might secure a high-yield 5.15% savings option – let's determine your eligibility.

In a move to attract savers, National Savings and Investments (NS&I) has announced a one-year fixed savings bond with an attractive rate of 5.15% Annual Equivalent Rate (AER). This rate is noteworthy as it offers secure and predictable returns over a fixed term, surpassing the current base rate and standing as the best one-year fixed savings return on the market.

The Guaranteed Growth Bond and Guaranteed Income Bond from NS&I offer this competitive rate. The Guaranteed Growth Bond pays interest annually, while the Guaranteed Income Bond offers monthly interest payments. It's important to note that the rate may change at any time, and the product is expected to be in high demand.

If a customer saves £20,000 in either account, a basic-rate taxpayer would earn £1,024 in interest annually, while a higher-rate taxpayer would earn £818. Should the savings increase to £50,000, the respective earnings would be £715 and £1,745 for basic- and higher-rate taxpayers, respectively.

NS&I savings are backed by the Treasury, allowing customers to save up to £1million. Interest earned from both accounts is not compounded and is paid into a separate nominated account.

Customers will receive a reminder 40 days before their bond matures. After receiving a 30-day reminder, customers can decide whether to reinvest and earn the 5.15% rate or take their money out.

For longer terms (2, 3, and 5 years), the rates are 4.6%, 3.35%, and 4.1% AER, respectively. The 5.15% 'off sale' savings rate is only available to customers whose current Guaranteed Growth Bond is reaching its maturity date.

It's worth mentioning that NS&I's current 5.15% fixed-rate savings account is a significant improvement compared to typical savings accounts. Other providers such as Secure Trust Bank and SmartSave, which were returning 5.05% and 5.02% AER on their one-year bonds on August 12, have since adjusted their rates to 4.93% and withdrawn their product from the market, respectively.

Around 225,000 people purchased the 6.2% saver offered by NS&I last summer. Unfortunately, this product is no longer available, but customers who purchased it may be eligible for the 5.15% rate as it matures.

The top one-year fixed savers on the market currently include Ford Money, Habib Bank Zurich, and Close Brothers, all offering 5% AER. However, NS&I's 5.15% rate remains the best in the market.

In conclusion, NS&I's 5.15% fixed savings bond offers a competitive rate, securing it as the best one-year fixed savings return on the market. Customers are encouraged to take advantage of this opportunity, as these bonds should be maturing around now.

Savvy NS&I fixed bond holders might secure a high-yield 5.15% savings option – let's determine your eligibility.