The new Investment Bond from Government savings provider NS&I will pay savers 2.2% for three years from April 2017, Chancellor Philip Hammond confirmed today. Despite its name it's a savings account that pays interest, it's not a risky investment.
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.
Budget 2017: Other key stories
- Self-employed face class 4 national insurance hike
- New tax-free childcare scheme to launch next month – what we know so far
- Cost of mobile roaming outside the EU set to rise
- Airbnb rentals may no longer qualify for tax break as Government plans 'Rent a Room' overhaul
- Tax-free dividend allowance to be slashed
- Technical education students to receive maintenance loans from 2019
- Smokers to be hit by new 'floor price' tax on cigarette packs
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.
.png.rendition.320.320.png)
