Savings update: NS&I's Budget bond set to be top-paying deal

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National Savings & Investments will launch a three-year fixed rate bond next month at 2.2 per cent. The Investment Guaranteed Growth Bond will be open to those aged 16 or over with a bank account and will be available online only.

You can put in between £100 and £3,000 and the bond will be on sale for 12 months. Over the full three-years, you will see a total £202.39p interest on £3,000. The actual launch date is yet to be confirmed.

The top one-year fixed rate bond at 1.8 per cent comes from Atom Bank. To open an account savers must use an app on their phone or tablet. The next best deal is 1.62 from OakNorth Bank.

On the high street, the best deal comes from the new Newcastle Building Society bond at 1.4 per cent. For two years, you'll earn 2.1 per cent with Atom Bank, 1.66 per cent from OakNorth Bank and 1.65 per cent from United Trust Bank. Currently the top three-year deals come from Atom at 2.2 per cent and Secure Trust at 2 per cent.

TOP EASY-ACCESS AND FIXED-RATE DEALS

On easy-access accounts internet-based French bank RCI pays a top 1.1 per cent on its Freedom Account. The new Online Bonus Saver account from Skipton Building Society, launching on Tuesday (14 March), will pay 1.02 per cent including a 0.21 percentage point bonus for 12 months.

On tax-free cash Isas, the top easy-access cash Isa rate comes from Paragon Bank Limited Edition Easy Access Cash Isa at 1.05 per cent.

Virgin Money Defined Access Isa pays 1.01 per cent but limits you to making three withdrawals a year. Both accept transfers from other providers. Skipton Bonus Cash Isa pays 0.9 per cent including a 0.25 percentage point bonus for a year.

On one-year fixed rate deals Newcastle Building Society's new account at 1.2 per cent tops the best buy tables. For two years, you can earn 1.26 per cent with Principality Building Society.


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