Budget 2017: New NS&I Investment Bond will pay 2.2%

It will pay the rate on a maximum £3,000 saving, meaning you'll be able to earn up to £66 interest a year. For full info on how it works and who can get it, see our NS&I Investment Bond guide.

The Government had said the bond was expected to pay 2.2% when it was first announced in November's Autumn Statement – but the rate wasn't confirmed until today.

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• Tax-free dividend allowance to be slashed

• Technical education students to receive maintenance loans from 2019

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How does this compare with existing savings accounts?

In November, the Investment Bond's expected rate of 2.2% looked pretty good – the top three-year fixed-rate savings bond, from Tesco Bank, paid 1.62%.

Four months on though, the Investment Bond rate doesn't look quite as good. The current top-paying three-year bond from app-only Atom Bank also pays 2.2% AER – but allows a much higher £100,000 investment.

Where can I apply for the bond?

You'll be able to apply on the NS&I website from April 2017. For full information, see our NS&I Investment Bond guide.