In the Chancellor’s Autumn Statement, announcements included a new three-year Government-backed NS&I Investment Bond.
- This will be available from spring 2017
- Rate of 2.2% AER interest for three years on up to £3,000
- Savers could earn £66 interest a year from the bond (before any compounding)
Cutting your costs, fighting your corner
For immediate release 23 November 2016
Martin Lewis comments on the new NS&I investment bond
- Bond announced in the Chancellor’s autumn statement this afternoon
- Martin Lewis says it “isn’t the Chancellor’s rabbit out of a hat”
Of the announcement of the new bond, Martin Lewis, founder of MoneySavingExpert.com, says:
“This new NS&I bond isn’t the Chancellor’s rabbit out of a hat, it’s more of a mouse.
“Unlike its predecessor, the pensioner bond, which allowed people to save up to £10,000 at up to 4% for 3 years, this is £3,000 at a likely 2.2%.
“You’ll be saving for 3 years, so that’s £66 in interest a year (ignoring any compound interest). The current best-paying 3 year fixed deal on the market is 1.62%, so it’s an improvement. But actually, in the private market at the moment, it’s only an improvement of £18 a year.
“Certainly any account that beats the paltry rates of interest that we have currently is to be welcomed, but I don’t see many people whooping.”
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About MoneySavingExpert.com: MoneySavingExpert.com is dedicated to cutting consumers’ bills and fighting their corner. The free-to-use consumer finance help resource aims to show people how to save money on anything and everything, and campaigns for financial justice. Set up in 2003 for just £100, its free-to-use, ethical stance quickly made it the UK’s biggest independent money website, according to internet ranking site Alexa.com, and the number one ‘Business and Finance – Business Information’ site, according to Hitwise. It has more than 10 million people opted-in to receive the weekly Martin’s Money Tips email, and more than 14 million unique monthly site users who visit more than 23 million times a month. In September 2012, it joined the MoneySupermarket.com Group PLC.
About Martin Lewis: Martin Lewis OBE, Money Saving Expert, is the journalist and consumer campaigner who created MoneySavingExpert.com, the UK’s biggest money website. He’s the UK’s most internet-searched man, Citizens Advice’s Consumer Champion of the Year, and has spearheaded major financial justice campaigns including bank charges reclaiming (over six million template letters downloaded) and PPI reclaiming (over five million) and a successful large-scale campaign to get financial education in schools. He has his own prime-time ITV programme, The Martin Lewis Money Show, as well as regular slots as resident expert on Good Morning Britain, This Morning and Radio 5 Live, among others.He was appointed OBE in the Queen’s Birthday Honours in June 2014.