NS&I rate hike but there may be better deals

A NEW range of fixed rate bonds has been launched by National Savings & Investments (NS&I) in a boost for savers after a safe home for their money, but experts say it’s still possible to get higher rates elsewhere.

- By Harvey Jones

They say now may be the ideal time to shop around with stock markets volatile, interest rates likely to fall and Chancellor Rachel Reeves potentially cutting the Cash ISA allowance.

Government-backed NS&I has relaunched its one-year and five-year British Savings Bonds, while also hiking rates for both its two and three-year bonds.

This is the first time it has issued bonds across one, two, three and five years at the same time since 2010.

The new rates are among the highest in years, with its one-year Guaranteed Growth Bond paying 4.05%.

Rates on two and three-year Growth Bonds have climbed to 4.00% and 4.10% respectively.

NS&I’s retail director Andrew Westhead said the bonds “offer savers greater choice, safe in the knowledge that their savings are 100% protected”.