Interactive Investor

Blow for savers as NS&I withdraws popular bonds and cuts rates

3rd September 2019 09:48

Sylvia Morris from interactive investor


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Those already holding the bonds can still renew them when they reach their maturity date – but at a lower rate

National Saving and Investment (NS&I) has withdrawn its popular Guaranteed Growth and Guaranteed Income Bonds from general sale.  

Those already holding the bonds can still renew them when they reach their maturity date – but at a lower rate.

The rate on its one-year Guaranteed Growth Bond falls from 1.5% to 1.25%.  The three-year bond goes down from 1.95% to 1.7%.  

The one-year Guaranteed Income Bond drops to 1.2% from 1.45%. While, the three-year bond now pays 1.65% instead of 1.9%.  

At the same time, it has reduced the rates on its two- and five-year Guaranteed Growth Bonds, already closed to new savers but available to those who want to renew, to 1.45% and 2% respectively.  

Fixed Interest Savings Certificate rates are also down - by 0.25 percentage points to 1.3% for two years and 1.9% for five years.

Those with a Guaranteed Growth or Income Bond or Fixed Interest Savings Certificate which come to the end of their term on or before 5 October will receive the old higher rates when they come to renew it – but only if they pick the same term.    

However, if they choose a different term on bonds maturing before 6th October, they will lock in at the lower rates.   

Any savers with bonds which mature on or after 6 October will see automatically be offered the lower rate at renewal.

This article first appeared on our sister website Money Observer

This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.

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