A new bond from National Savings & Investments (NS&I) went on sale last week. The interest rate is one of the best available for savings but is already less than inflation, which is forecast to rise.
The 2.2% paid on the three-year Investment Guaranteed Growth bond beats three-year rivals but is lower than the consumer prices index (CPI) measure of inflation, which was 2.3% in March.
From £100 to £3,000 can be invested, and anybody aged 16 or over can apply. The minimum age for NS&I’s highly popular “pensioner bonds”, launched in January 2015, was 65.
NS&I is 100% guaranteed by the government, so it is considered a safe choice.