NS&I Pulls Top-Paying Savings Bonds

Top-paying bonds offered by National Savings and Investments (NS&I) have been pulled from the market after demand outstripped supply.

The three and five-year Guaranteed Growth and Guaranteed Income Bonds were launched on October 29. Rates were hiked by up to 2.65%, with the five-year bond paying 4.6%.

Says an NS&I spokesman: "Sales targets for these bonds were achieved more quickly than originally expected due to their popularity."

As well as being highly competitive, the bonds also had the benefit of a Government guarantee. Withdrawal comes less than a month after NS&I's market-leading one and two-year bonds were also pulled.

This latest loss means that the best fixed rate on offer is now just 2.25% through its five-year Fixed Interest Savings Certificate, although returns on the product are tax free.

People seeking an income can opt for one of its income bonds, which pay returns on a monthly basis, although the rate is variable, not fixed, and currently at just 1.7%.