NS&I bond rates queried

Latest analysis of bond rates paid by NS&I suggests the executive agency is still trailing the private sector despite increasing its rates in response to last month's interest rate hike.

Figures published by Baronworth suggest this is the case despite bonds from other providers not having increased their payout rates to the same extent.

For example, it says over a typical one-year term where NS&I pays out 5.10% per annum gross on Pensioners Bonds, the best equivalent Guaranteed Income Bond rate available on the market would be worth up to 6.02% for a base rate tax payer, and up to 6.43% for a higher rate payer.

Over two years NS&I’s rate of 5.05% compares with 5.79% and 6.17% respectively. Baronworth says the latest figures underline its view tax paying pensioners are still not getting a good deal from NS&I.

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