In the Budget last month, the Chancellor also confirmed the new National Savings and Investments (NS&I) bond, which will have a three-year term and will offer an interest rate of 2.2%.
The maximum investment limit, however, is low at £3,000.
The bond will be subject to a minimum investment limit of £100 and will be available for 12 months from April 2017.
Autonomy Wealth View – many have been quick to point out that the rate is not as “market-leading” as would have been the case at the time of the announcement in the Autumn Statement. Some so-called “Challenger” banks already offer products with a similar rate. More depressingly, the Budget Report estimated that the £3,000 limit would cover the savings of half of all UK households.