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...

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