The new Investment Guaranteed Growth Bonds, announced by the Chancellor in the November 2016 Autumn Statement, have been launched today and are now on sale for 12 months, available online only.
As confirmed by the Chancellor in the Budget on 8 March 2017, the Bonds offer a rate of 2.20% gross/AER, fixed over a 3-year term.
The Bonds are available to those aged 16 or over, with a minimum investment of £100 and a maximum limit of £3,000 per person.
For more information about the Investment Guaranteed Growth Bonds, click here.
While these bonds may be "market leading", the rate is hardly enticing and is only narrowly ahead of the competition. Certainly not as appealing as the Pensioner Bonds issued a few years ago.
The best instant access account is currently paying 1.15% pa at present. So whilst the rate on the new NS&I account is higher, because of the low investment limit of £3,000 this only equates to an extra £31.50 per year for locking away your money for 3 years; I'll leave you to decide if that's worthwhile.
This article is intended for information purposes only and should not be considered to be a recommendation. This article is based on our understanding of current and draft pension and tax rules as at the date of this article. Please note that tax and pension rules are subject to change; if you are at all uncertain about the suitability of any option for your circumstances we strongly suggest you seek regulated personal financial advice. You should not take action solely on the basis of this article without seeking advice specific to your circumstances. Please get in touch to find out more.
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