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National Saving and Investment (NS&I) has withdrawn its popular Guaranteed Growth and Guaranteed Income Bonds from general sale.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.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.