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Daily Express - British Savings Bonds - Is the name misleading?

ended 04. April 2024

As a follow up to the previous alert on British Savings Bonds..

 AJ Bell has criticised the British Savings Bonds: “The bonds are a fancy bit of marketing and aren’t actually any different to putting your money in other NS&I products. Despite being branded as ‘British Savings Bonds’ the money will go into the general government coffers, in the same way as other money raised by NS&I.”

The Daily Express journalist would like responses to the following questions:

- Is it misleading to name them 'British Savings Bonds' if they are not specifically invested in UK companies?

- Should the Bonds have been an entirely new product rather than a re-issue of the Guaranteed Growth Bonds and Guaranteed Income Bonds?

5 responses from the Newspage community

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Editor
Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
The name is a bit of a gimmick and there are better rates available elsewhere. These may be something to consider where FSCS compensation limits are already maxed out at other banks. Locking away the money for 3 years is also not something to do without serious consideration. Cash is great for short term expenses and liquidity but by locking it away, although the rate may be marginally higher than an easy access account, you lose the flexibility and whole reason for keeping cash in the first place!
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Post-Brexit, borrowing money has got more expensive for the government. Add onto that the bill for furlough and other Covid related costs, debt interest is now a major expense. Labelling this bond as a British Savings Bond is a rallying cry to the typical NS&I investor; middle England, cautious and patriotic (whatever that means). The government know what they are doing, and it will probably work. One less tranche of funds having to be borrwed on international markets.
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Gary Bush
Financial Adviser at MortgageShop.com
I can only agree that these British Savings Bonds are just a spin doctor labelled attempt to put lipstick on a pig - the government making these funds available to struggling British businesses to assist expansion would of course have made more sense but the Treasury, it seems, see's itself in greater need than the public.
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Joshua Gerstler
Chartered Financial Planner at The Orchard Practice
Jeremy Hunt said he will make it easier for people to save for the long term with a new British Savings Bond, delivered through National Savings and Investments, offering savers a guaranteed rate, fixed for 3 years.

There is nothing here that makes it any easier than it already is to save. Go online and you can find plenty of accounts which will allow you to save for three years.

Furthermore, we vary rarely want anyone to save for the long term. Over the long term it is more than likely that you will be better off investing rather than saving. Savings do not provide a good return over the long term.

And when did 3 years become the long term? In financial advice, anything less than 5 years is not normally considered long term.

It is called a British Savings Bond as it is a savings bond available in Britain.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
Yet another mealy mouthed piece of smoke and mirrors from a government barely on it's last legs. They could have done something really interesting and innovative that helps British businesses grow but instead we have a product that doesn't really do much of anything.