Budget 2017: New Investment Bond will pay 2.2%

DonnySaver

Does the government REALLY consider this usefull ??

Like someone else has already mentioned, I'll stick with my 2 Tesco 3% accounts thank you very much.

alanq

The £3k maximum is far too small.

It will only be possible to open the account online thus disadvantaging some of the people who might have benefitted from it. Not everyone has access to the internet or is confident using it.

There are differences with other term accounts. It will be possible to open an account with £100 and add to it up to £3k during the 3-year term. So to hedge against changing interest rates deposit the minimum and only top up when the rate looks attractive? Early access will be possible with a penalty.

ColdIron

alanq wrote: »

It will be possible to open an account with £100 and add to it up to £3k during the 3-year term. So to hedge against changing interest rates deposit the minimum and only top up when the rate looks attractive? Early access will be possible with a penalty.

I can't see much downside to opening one with £100 to keep your options open. Tesco caused a stampede by guaranteeing their rate for three years, this is the only other non absolutely fixed term guarantee I can think of. If you've used all the usual current account suspects and have £20,000 sitting in a 123 earning 1.5% why not shift £3,000 or have a bolt hole for it until 2021? I have a year to decide whether to open one or not and for £100 I can't think of a good reason not to, after all we'll be paying those that do with our taxes