Tag Archives: Guaranteed Income Bonds

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New Fixed Rate Direct Two Year Bonds By NS&I

NS&I is to launch a new 2-year issue of both its Guaranteed Growth Bonds and Guaranteed Income Bonds. The new 2-year Bonds will only be available direct (via phone or online) from NS&I and will pay an interest rate of 3.75% per annum and 3.65% respectively.

Fixed Rate Direct Two Year Bonds

Customers can invest between £500 and £1 million in total in the fixed rate bonds, with guaranteed rates of interest. The Guaranteed Income Bond offers customers the opportunity to receive their interest as a monthly income, while with the Guaranteed Growth Bond customers will receive their interest at the end of the 2-year term.

The Bonds come with the 100% capital guarantee which NS&I can offer because all of its savings and investments are backed by HM Treasury.

The new Bonds, which are available online and through NS&I’s award winning UK based call centres, are part of NS&I’s strategy to encourage customers to buy and manage their savings with NS&I directly. This enables NS&I to offer a more attractive interest rate to customers.

Peter Cornish, Director of Customer Offer at NS&I, said: “Our Guaranteed Income Bonds and Guaranteed Growth Bonds offer customers a simple and straightforward saving opportunity.

“Money saved in our Guaranteed Income Bonds or our Guaranteed Growth Bonds will earn a competitive and guaranteed rate of interest for the next two years. It is a simple offer and easy to take up, either online at nsandi.com or through our UK based call centres.”

Dr Robin Keyte, Chartered Financial Planner and Director of Towers at Taunton Ltd, which specialises in fee-based financial planning and socially responsible investments, commented on the new issues from NS&I: “NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds are an effective way for customers to earn a fixed rate of interest on their investment, either as monthly income or as a lump sum at the end of the term. Like all NS&I investments, they also have the added benefit of a 100% capital guarantee, which is something many people will value highly in the current environment.”

About NS&I
NS&I is one of the UK’s largest financial providers with almost 27 million customers and over £94 billion invested. It is best known for Premium Bonds, but also offers Inflation-Beating Savings, Guaranteed Equity Bonds and Children’s Bonus Bonds in its range. All products offer 100% security because NS&I is backed by HM Treasury.

NS&I products are available over the telephone, internet, post and by standing order. They are also available through a network of Post Office branches. Customers can also pick up brochures for NS&I Premium Bonds, Inflation-Beating Savings and Income Bonds at retailer WHSmith in 400 of its High Street stores and 155 of its travel stores.

Via EPR Network
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Banks, Bonds, Checking & Savings, Financial, Financial Services, Interest Rate, Investment, Money, Personal Finance

National Savings And Investments (NS&I) Has Increased The Interest Rates On Its Income Bonds By 1%.

The revised interest rates came into effect from 20 May 2009 for Income Bond customers.

nsandi

Guaranteed Income Bonds are intended to provide investors with a100% secure monthly income at a competitive variable interest rate. This no risk guarantee to the investment capital is possible because National Savings and Investments is backed by HM Treasury. Income Bonds can be cashed in at any time with no notice and no penalty and income can be paid directly into a bank or building society account or into a NS&I Investment Account or Easy Access Savings Account.

The combination of complete security and the increased interest rates are expected to make NS&I Income Bonds especially attractive in the current economic climate.

NS&I constantly reviews savings products offered by other providers and has made this decision to take into account the rates available on other types of products which might be considered by Income Bond customers. NS&I continues to follow a pricing strategy designed to balance the interests of its savers, the taxpayer and the stability of the financial services market.

The interest rates on NS&I’s other savings products, including NS&I’s Guaranteed Income Bonds, will remain unchanged.

This brings the new Income Bonds variable gross rates* to 1.7% p.a. (1.71% AER**) for savings of £500 – £24,999 and 2% p.a. (2.02% AER) for savings of £25,000+.

*Gross means the taxable rate of interest without the deduction of UK Income Tax
**AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year the rate quoted and the AER will be the same

 

About NS&I
National Savings and Investments is one of the largest savings organisations in the UK, offering a range of savings and investments to almost 27 million customers. NS&I is best known for Premium Bonds, but also offers a range of savings accounts including easy access savings accounts, savings bonds, investment accounts, and children’s bonus bonds. All products offer 100% capital security, because NS&I is backed by HM Treasury. Further information and digital images are available from the NS&I media team. An ISDN line is available for interviews. 

Via EPR Network
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