Chancellor Jeremy Hunt has announced a new British savings bond from NS&I.
During the Spring Budget (6 March) Hunt revealed a bond which “guaranteed savings rate over three years” according to Hargreaves Lansdown head of active savings Mark Hicks.
Hicks added: “All eyes will be on the rate available, because even savers who want to buy British with their cash will not want to accept a disappointing rate in return.
“With the Bank of England set to cut rates in the coming months, savers will need to think carefully whether they want to wait for this bond – with no certainty about the return on offer, or fix now, while they can still secure a great rate.
“It’s also worth noting that most savers are currently choosing easy access and shorter-term fixed rates. Given this is a three-year bond, it will need to be a very attractive rate to inspire much interest from savers.”
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