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.

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.

Martin Lewis
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