Dax Harkins

The new issues offer savers 6.20% gross/AER for one-year fixed rate guaranteed growth bonds and 6.03% gross/6.20% AER for guaranteed income bonds.

Interest rates are also being increased for existing customers with two, three and five-year bonds when their current holding reaches maturity.

Andrew Griffith, economic secretary to the Treasury, said: “It’s vital that savers are able to benefit from recent interest rate rises, so I’m delighted that NS&I is releasing new issues of guaranteed growth bonds and guaranteed income bonds at over 6% – the highest rate since they were launched.

“For further peace of mind, the Treasury provides a 100% guarantee on these savings.”

NS&I chief executive Dax Harkins said: “It was great to be able to bring back on sale our one-year fixed rate guaranteed growth bonds and guaranteed income bonds in February last year. Today, we are able to offer new issues with an improved interest rate for customers wanting the certainty of knowing how much they will be earning on their savings for one year.

“At the same time, existing customers with maturing bonds can choose to invest at new higher rates for two, three and five-year guaranteed growth bonds and guaranteed income bonds.”

Guaranteed growth bonds and guaranteed income bonds one-year fixed rate issues are open to savers wishing to fix for one year at a guaranteed rate. Savers will need a minimum investment of £500 and a maximum of £1 million in each issue. After one year, savers will have the choice to withdraw their cash or reinvest.

The two, three and five-year products are only available to existing customers with maturing products and are not open to new customers.