Budget 2017 National Savings Fixed Rate Bond

Budget 2017

National Savings Fixed Rate Bond.

The Budget confirmed that National Savings and Investments (NS&I) will launch at new 3 year bond in April 2017 and will be open for applications for 12 months.

• Maximum investment £3,000
• Min age 16
• Fixed rate 2.2%
• Open for new applications April 2017 to April 2018.

Comment

This is yet another cheap way for the government to raise money.  2.2% clearly smashes rates commercially offered by high street banks and building societies.  Given that inflation is predicted to be higher than this for the next 3 years, it is cheaper for the Government to borrow from the people with a fixed rate bond via NS&I rather than the Treasury borrowing more via index linked gilts (inflation protected).

That said, for beleaguered savers, 2.2% offers a modicum of inflation protection on their savings compared to low rates are banks or higher risk stock market investment.

State Pension Age

Council Tax

Stealth Tax

Personal Allowance

Self Employed

Savings Bond

QROPS Tax

Dividend Tax