New NS&I bond won't keep pace with inflation - HL

UK inflation rate is currently 2.3%

Hannah Godfrey
clock • 1 min read

The NS&I bond announced in last month's Spring Budget has been launched, offering a 2.2% rate on deposits over a maximum term of three years.

The bond will be available for purchase from now on for the next 12 months. It will be open to all people aged 16 and over and will be subject to a minimum investment of £100 and a maximum of £3,000. This means if an investor were to put away the maximum £3,000, they would earn about £202.39 in interest after the full three-year period. However, although the bond is being billed as "market leading", savings deposited in the bond will fail to keep up with rising prices, with UK inflation currently stood at 2.3% and projected to rise over the coming years, Hargreaves Lansdown has warned...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Bikes, bias and the quest for outperformance

Bikes, bias and the quest for outperformance

I'm a disciple of the philosophy espoused by Lotus founder Colin Chapman: 'Add lightness'

Tobias Bucks
clock 14 July 2025 • 5 min read

Watch Professional Adviser's Working Lunch with Schroders - Beyond the Pulse: Essential insights for financial advisers in 2025

Catch up on the discussion

Professional Adviser
clock 10 July 2025 • 1 min read
Investors 'do not understand' implications of private markets investing

Investors 'do not understand' implications of private markets investing

House of Lords Financial Services Regulation Committee looked at the issues

Linus Uhlig
clock 09 July 2025 • 1 min read