NS&I is to launch British Savings Bonds, increasing the savings opportunities available to consumers to save for the longer-term, Chancellor Jeremy Hunt announced in today's Spring Budget.

The British Savings Bonds will be new three-year fixed-rate issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds, which were last on sale on 2019. They will offer savers a guaranteed rate over three years for investments between £500 and £1m.

The bonds will go on sale in early April and the intention is to have them available for an extended period of time.

Furthermore, the interest rates will be announced in due course and are intended to be priced mid-market in relation to similar products, in line with NS&I’s requirement to balance the interests of savers, taxpayers and the broader financial services sector.

Reacting to the new product on X, Martin Lewis warned that the interest rate will need to competitive to be “worth” peoples’ time.

The personal finance journalist wrote: “British Saving Bond to come from NS&I with new three year fix.

“The key is what is the rate - it will need to be over 5% to be worth it.

“Unless it allows very large savings, over £85,000, which is when NS&I being state owned has an extra safety boon.”

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