Treasury savings buck trend

NEW issues of British Savings Bonds have gone on sale with increased rates of interest, NS&I has announced, bucking trends seen elsewhere in the savings market.

- By John Smith

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The Treasury-backed savings provider, which offers a range of savings and investments to more than 24 million customers, said the increased interest rates are being made available to both new and maturing customers.

British Savings Bonds are fixedterm issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds. Among the changes,

NS&1 is offering one-year Guaranteed Growth Bonds and Guaranteed Income Bonds at a new rate of 4.2% AER (annual equivalent rate), up from 4.04% previously.

Two-year versions of the bonds are being offered at 4.1% AER, up from 3.85% previously.