Experts have warned that a new ‘market-leading’ savings deal announced by Chancellor Philip Hammond at the 2017 Spring Budget is likely to be ‘bettered’ soon.
The new National Savings and Investments (NS&I) Investment Bond, which will be launched in April, will offer a rate of 2.2% on deposits between £100 and £3,000 over a term of three years, and will be available for 12 months. It will be open to savers aged 16 and over.
Critics have suggested that recent improvements in other deals may lead to the emergence of a better rate.
In addition, many experts have decried the product as being ‘underwhelming’, with others labelling it as a ‘sideshow’.
This may be due to the fact that official forecasts estimate that the cost of living will rise by 2% or more over the coming three years.
However, financial analyst group Moneyfacts has warned that similar savings deals with the same rate of interest do not have the government security that the new NS&I Investment Bond does.