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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Banks

NS&I launches first two and five-year fixed bonds in 15 years

Treasury-backed National Savings & Investments (NS&I) has launched its first two and five-year fixed-rate bonds since 2009.

Unveiling the new state-guaranteed savings products on Tuesday, NS&I also announced an interest rate increase on its three-year fixed-rate bond.

Savers will be offered 4.60% on each of the new two-year growth and income bonds from Tuesday, the bank said in a statement.

For the five-year fixed products, annual equivalent rates of 4.10% have been set.

These coincided with an increase in interest on new three-year fixed bonds, from a 4.15% to 4.35% annual equivalent rate.

“[These] provide NS&I savers with increased choice and longer-term security in a changing market,” chief executive Dax Harkins said.

“Today’s changes will help us to meet our net financing target while continuing to balance the interests of savers, taxpayers and the broader financial services sector.”

NS&I added that no new one-year products were being offered, with savers required to deposit a minimum of £500 on the two, three and five-year bonds.

Hargreaves Lansdown analyst Sarah Coles noted NS&I had looked to avoid “busy” markets where far better rates were offered, such as for one-year fixed deals.

“While these are decent rates, they’re not going to set the savings world alight,” she said.

“They’re likely to do the job though. The timing is clever because the Bank of England rate cut will have reminded people that in the coming months we can expect easy access savings rates to fall.”

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