British savings bonds

Money_Grabber13579

In the budget documents just released, it’s been confirmed that NS&I will be releasing a three year fixed rate bond in early April 2024. The rate has not yet been announced but hopefully will be fairly competitive given recent offerings.

SnowMan

The only mention appears to be in the main budget speech/document

4.32 The British Savings Bonds will be delivered through National Savings and Investments and will be launched in April 2024. This product will offer a guaranteed interest rate, fixed for three years, increasing the savings opportunities available to consumers.

5.106 British Savings Bonds – The government has announced that National Savings & Investments (NS&I) will launch a product which will offer consumers a guaranteed interest rate, fixed for three years. This product will increase savings opportunities available to consumers in the UK and will be brought on sale in early April 2024.

eskbanker

Not sure I'm understanding why an unremarkable three year fixed rate bond would be considered worthy of inclusion in a Budget statement, unless the gratuitous inclusion of 'British' in the name is some sort of crass stunt to try to win over some of the ERG types?

Albermarle

Presume it will not be tax free ( which would make it more interesting) as this would have been mentioned ?

boingy

We'll find out in a month or so. Make sure you have funds ready to go in case the rates are so attractive that they have to close it off after a few weeks, like the 6.2% bond last year..

ColdIron

The GGB and GIB was available for 5 weeks. 30/08/2023 - 05/10/2023, I can't see the new one being so attractive but I live in hope

cmundo

I cannot see a 3 year bond being set at an attractive rate but we can live in hope!

Altior

eskbanker said:

Not sure I'm understanding why an unremarkable three year fixed rate bond would be considered worthy of inclusion in a Budget statement, unless the gratuitous inclusion of 'British' in the name is some sort of crass stunt to try to win over some of the ERG types?

Probably copying our continental friends with their 'Next Generation EU Green Bonds'!

Hoenir

Green Bonds already exist. Savings bonds haven't been offered by the NSI for a few years. Assume their target to attract funds has been increased for 2024/2025. Competition for savers money is hotting up. 

Altior

They do yes, the plain old Green Savings Bonds moniker to appeal to climate alarmist types was not enough to deflect away from the dismal rates on the table. It's all about the rate, compared to the wider market, whatever the issues are called.

EdSwippet

boingy said:

We'll find out in a month or so. Make sure you have funds ready to go in case the rates are so attractive that they have to close it off after a few weeks, like the 6.2% bond last year..

You're unlikely to see anything close to an "attractive" interest rate. From NS&I:

Budget announces NS&I 3-year fixed-rate Bonds and new 2024-25 Net Financing target

The Bonds will go on sale in early April and the intention is to have them available for an extended period of time. The interest rates will be announced in due course and are intended to be priced mid-market in relation to similar products, in line with NS&I’s requirement to balance the interests of savers, taxpayers and the broader financial services sector.

Apparently no substance, only more froth and spin.