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.
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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.