In the Budget announcement yesterday (Wednesday 19 March), the Chancellor outlined plans for National Savings & Investments (NS&I) to help support savers.
Firstly, NS&I will launch a special issue of a market-leading savings bond for people aged 65 and over which will go on sale during the final quarter of the financial year (January 2015), with the indicative interest rates announced as 2.8%/AER (1 year) and 4%/AER (3 year). There will be a maximum limit of £10,000 that can be saved in each bond, but the exact rates and limit will be set in the Autumn Statement.
Changes will also be made to their most well-known product – Premium Bonds. From 1 June 2014 the investment limit of Premium Bonds will be lifted from £30,000 to £40,000 and then, further increasing that from £40,000 to £50,000 in 2015-16. The current £30,000 cap on investments has not increased over the last decade.
Another positive change for Premium Bonds customers is that as of the August 2014 prize draw, two £1 million prizes will be given out each month, which will add extra excitement to the prize draw.