NS&I alters availability of Guaranteed Bonds

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NS&I alters availability of Guaranteed Bonds

Fri 20th Nov 2009

NS&I has decided to withdrawn the one and two-year versions of its Guaranteed Growth and Income Bonds from sale.

The Guaranteed Growth Bond and Guaranteed Income Bond are both still available in three and five-year versions.

Rates of at least 4.40 per cent AER are offered for a three-year investment in the Growth Bond, while the Income Bond provides 4.59 per cent AER over five years.

John Prout, director of customer sales and retention at NS&I, said that the company had forecast likely volumes for sale.

"However due to the popularity of the one and two-year issues, we have achieved our sales target more quickly than anticipated," he added.

The investment services provider said that the changes had to be made to ensure that it could balance the interests of savers, taxpayers and the stability of the financial marketplace at large.

In October, the institution removed these fixed-rate bonds from sale at the Post Office, with customers now having to apply directly to them either by phone, online, or through the post.

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