NS&I British Savings Bonds
Meanwhile, the Chancellor also announced new British Savings Bonds from the Government-backed brand, NS&I, are set to go on sale in April 2024.
These new bonds will offer savers a fixed rate of interest over three years for investments between £500 and £1 million.
“NS&I is a trusted brand and those savers who want their money safe and perhaps to support UK businesses could well find these attractive,” said Springall.
With the interest rates yet to be decided, keep an eye on our three-year fixed bond chart to see how these accounts could compare to others on the market.
Alternatively, if you’re looking for a shorter-term bond, you’ll find top rates in excess of 5.00% AER on our one-year and two-year fixed charts.
Further cuts to National Insurance contributions
After reducing Employee National Insurance contributions (Class 1 National Insurance) in last year’s Autumn Statement from 12% to 10%, the Chancellor revealed a further two percentage point cut will come into effect from the 2024/25 tax year. This will see Employee National Insurance fall to 8%.
Self-employed National Insurance will see a similar cut, falling from 8% to 6%.
“When combined with the autumn reductions, it means 27 million employees will get an average tax cut of £900 a year and two million self-employed will get a tax cut averaging £650,” said Hunt.
However, Laura Suter, Director of Personal Finance at AJ Bell, highlighted this amount will vary depending on your salary:
“For low earners the saving is smaller, as less of their income falls in the band liable for National Insurance. But for higher earners there’s the potential to save up to £754 a year”.
A full list of measures announced in the Spring Budget 2024 can be found on the Government website.
