Earn a guaranteed return of 3.95% AER on your savings for the next 12 months with the NS&I 1 Year Guaranteed Growth Bond Issue 48.
What's the deal?
The NS&I's 1 Year Guaranteed Growth Bond Issue 48 offers a fixed rate return of 3.95% AER on your savings for 12 months.
You can open the account online, invest anything from £500 to £1million and choose to have your interest paid monthly or upon maturity.
What makes it great?
The 3.95% AER paid on this account by the NS&I is the market leading return available on a one year fixed term account. It's also pretty competitive when you hold it against the rates advertised by the majority of the 2 year bonds on offer too.
As the 3.95% AER return is fixed you have the reassurance that your savings will be accumulating interest at a rate you're happy with for the next 12 months.
Better still, the account does allow withdrawals throughout the term which gives you a little extra flexibility if you need emergency access to your funds. However, it's important to bear in mind that a 90 day interest penalty will be applied to your account if you do make a withdrawal during the account term.
It's also good to know that as the savings schemes run by the NS&I are backed by the government, any money you invest will be 100% safe.
Who would it suit?
The account is available to both existing and new customers providing they're aged 16 or over.
What's the alternative?
There are a number of other one year fixed rate alternatives available, however, none offer such a competitive rate as the NS&I's 1 Year Guaranteed Growth Bond Issue 48.
The Julian Hodge Bank's 1 Year Capital Millennium Bond is next in the running with a fixed rate of 3.7% AER, although their minimum investment is £1,000. While the UK 1 Year Bond 66th Issue from the Bank of Cyprus offers the most competitive return on a 1 year fixed rate bond that accepts investments from £1.
Returns of up to 4.35% are available if you're prepared to tie your money up without access for the next 2 years in return for a guaranteed rate.
If you'd prefer to be able to access your money as and when you need it, the Branch Bonus Account 2 from the West Bromwich Building Society pays the best rate available on an instant access savings account. The headline rate is 3.38% AER but bear in mind that this includes a variable bonus of 2.75% so you'll need to keep an eye on the payable rate to make sure you don't lose out. You'll also need to save at least £100 in the account to benefit from this rate.
Alternatively, the Citibank Flexible Saver Issue 2 can be opened with £1 and offers a return of 3.3% AER. Again this rate includes a bonus (2.25%) but this time it's fixed for 12 months which gives you a little more reassurance about the return you're likely to benefit from.
We have done our very best to make sure that the information included in this Deal is accurate. However, sometimes offers can be withdrawn or changed at the last minute so please do check that you're able to redeem this Deal before parting with any money, or going out of your way to take advantage of the offer.
