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

Why 2026 is the time for investors to challenge market 'certainties'

Why 2026 is the time for investors to challenge market 'certainties'

Six critical questions investors should be asking themselves

Matthew Spencer
clock 09 February 2026 • 4 min read
Advisers zoomed in on capital accumulation in Q4 2025

Advisers zoomed in on capital accumulation in Q4 2025

Titan Square Mile research finds

Jen Frost
clock 30 January 2026 • 3 min read
Measure for measure: How to track your tracker fund

Measure for measure: How to track your tracker fund

Tracking difference and tracking error

Terry McGivern
clock 28 January 2026 • 3 min read