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Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
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Health & travel
Featured - Switching deals
In need of a cash boost?Providers often entice new customers with cash incentives for moving current accounts. Compare deals and find out how to make the switch:
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
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The newly launched British Savings Bonds offer a guaranteed interest rate of 4.15% AER for three years.
National Savings and Investments (NS&I) released its new British Savings Bonds today (3 April), as announced by Chancellor Jeremy Hunt in the Spring Budget last month.
The British Savings Bonds pay 4.15% AER and have a three-year fixed term, which means savers are guaranteed to receive the rate for that period.
Read our overview to learn about some of the other changes that were announced in the Spring Budget.
British Savings Bonds are new issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds, which were last available in 2019.
While both options calculate interest daily, the Guaranteed Growth Bond pays the interest back into your Bond on anniversary, whereas the Guaranteed Income Bond pays the interest into your bank account each month.
As with other NS&I savings products, British Savings Bonds are backed by the Treasury, which means any money deposited in them is 100% secure.
Savers can deposit between £500 and £1 million in these Bonds, and NS&I says that the money saved into them will be invested back into supporting the UK.
British Savings Bonds sit alongside NS&I’s other products, including Premium Bonds and Green Savings Bonds, which saw their rate cut to 2.95% AER earlier this year.
As well as British Savings Bonds, the Chancellor also announced a new UK ISA in the Spring Budget, which will provide an additional £5,000 allowance for savers to invest in UK-focused assets.
“It is good to see the launch of these bonds from NS&I, after much anticipation as they are a popular brand with investors,” commented Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.
“These may well appeal to savers who are happy to forgo higher interest rates available elsewhere on equivalent term bonds to invest their cash, as NS&I products provide 100% capital security. Popular products don’t tend to sit on the shelf for very long, but NS&I intends to offer these British Savings Bonds for an extended period of time,” she continued.
While there are higher-paying easy access accounts and fixed-rate bonds available, with options at the top of the market currently paying more than 5%, Springall pointed out that British Savings Bonds “were not widely expected to lead the market on rate and its worth remembering that NS&I need to ensure they are on course to meet their net financing targets.”.
If you want a guaranteed return on your savings but don’t want to lock away your money for three years, you may want to consider shorter-term fixed bonds, especially as one-year bonds are currently paying higher rates than longer-term fixes.
Or, if you want the flexibility of being able to dip in and out of your savings, easy access accounts currently pay a higher rate than that offered by the British Savings Bonds. However, the rate on easy access accounts isn’t guaranteed and could drop at short notice.
Our savings charts are regularly updated so you can see the best savings rates available, whether you’re looking for an easy access account, a fixed-rate bond or a notice account. Similarly, you can also use our ISA charts to check out the top easy access and fixed ISA rates.
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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
The top rate for a two-year bond edges higher as leading notice returns dip below 5%.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a one-year bond from new savings provider Vida Savings, and a 85% LTV two-year fixed mortgage from HSBC.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With savers depositing £3.1 billion in ISAs in October, make sure your hard-earned cash is receiving competitive returns.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
The top rate for a two-year bond edges higher as leading notice returns dip below 5%.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a one-year bond from new savings provider Vida Savings, and a 85% LTV two-year fixed mortgage from HSBC.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With savers depositing £3.1 billion in ISAs in October, make sure your hard-earned cash is receiving competitive returns.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.