Article: Why government bonds may be the best bet for your savings

IT IS a graphic illustration of how dire the national finances are that one of the most competitive savings products in the UK at the moment is offered by the Government.

Normally the security of a Government-backed scheme means that it does not need to match commercial rates: but these are not normal times.

National Savings & Investments has just issued new Guaranteed Growth Bonds and Guaranteed Income Bonds, offering rates of up to 4.60%. In a market where many savings products are paying less than 2% and instant access accounts may pay 0.10% or less, the Government's savings products are difficult to beat.

John Prout, director of customer sales and retention for NS&I, explains: ...

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