Earn guaranteed monthly income for a fixed term.
Are you looking for guaranteed monthly income?
NS&I recently launched their British Savings Bonds, which the ex-Chancellor announced in the Spring Budget 2024, designed for people who are looking for guaranteed monthly income.
Essentials at a glance
What’s the interest rate?
4.50% gross/4.60% AER, fixed for 2 year, Issue 69
4.26% gross/4.35% AER, fixed for 3 years, Issue 72
4.02% gross/4.10% AER, fixed for 5 years, Issue 64
Can I take money out?
No, you cannot take money out until the Bond reaches the end of its term
Is the interest taxable?
Yes
How much can I start with?
£500 for each Bond you buy
What’s the max I can save?
£1 million per person in each Issue
Great for you if …
- If you are you looking for guaranteed monthly income for a fixed-term
- You want your interest paid out every month
- You have £500 or more to invest
- You are happy to invest online
Not for you if …
- You want access to your money during the term
- You want your interest to be added to your savings
- You prefer to invest by phone or by post
Is it worth it?
If you are you looking for guaranteed monthly income and you compare like for like with other fixed-rate bonds, then yes, it is.
But you have to consider that fixing cash for two years or more may not be prudent in an uncertain market. However, the likelihood of rates rising is not expected-probably the opposite!
NS&I offers a range of products, some with themes, but not all are competitive. Read about the NS&I Green Savings Bond
Consideration also needs to be given to your ISA savings, as any interest from an ISA is tax-free, whereas the NS&I bond income is taxable. Read if you should go all out on ISA’s
So, this bond could be considered after utilising ISA allowances or if you are a non-taxpayer.
The NS&I brand is also still a strong draw for people who want the guarantee of government-backed savings and the peace of mind that comes with it.
Contact us today if you want help and advice with your savings and income needs.
