Critics of the new British Savings Bonds have warned the Government-backed account is a “fancy marketing” ploy as the funds may not be directly invested in the UK economy.
New British Savings Bond Slammed As Cynical 'marketing' Ploy For One Simple Reason | Personal Finance | Finance
The Bonds were pitched as “opportunities to save whilst supporting investment in the UK” when they were announced in the Spring Budget.
New British Savings Bond Slammed As Cynical 'marketing' Ploy For One Simple Reason | Personal Finance | Finance
But experts have warned savers that their cash will likely go into a generic pot. Laura Suter, director of personal finance at AJ Bell, said: “The Chancellor announced the launch of the new savings bonds in the Spring Budget, hoping to capitalise on some patriotism across the nation to raise some more money for the Government.
New British Savings Bond Slammed As Cynical 'marketing' Ploy For One Simple Reason | Personal Finance | Finance
“However, the Bonds are a fancy bit of marketing and aren’t actually any different to putting your money in other NS&I products.
New British Savings Bond Slammed As Cynical 'marketing' Ploy For One Simple Reason | Personal Finance | Finance
“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.
New British Savings Bond Slammed As Cynical 'marketing' Ploy For One Simple Reason | Personal Finance | Finance
“The Government-backed provider has instead re-badged the previous Guaranteed Income and Guaranteed Growth bonds, issuing a three-year version of those accounts.”
Financial advisor Gary Bush, from MortgageShop.com, hit out at the choice of name as “a spin dcotor labelled attempt to put lipstick on a pig”.
He said: “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, sees itself in greater need than the public.”
Information on the NS&I website about the newly launched accounts states that “your savings will be invested back into supporting the UK”. Express.co.uk has asked NS&I for comment.
The new Bonds have also been criticised for offering a relatively low interest rate of 4.15 percent AER (annual equivalent rate).
Sarah Coles, head of personal finance at Hargreaves Lansdown, told Express.co.uk: “This rate just…
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