The income bonds provide a monthly income for savers, with interest paid out each month, while the interest on the growth bonds is paid at the end of the term.

Savers can invest from a minimum of £500 up to £1million in the accounts, with all the funds backed by the Treasury in the Government-backed accounts.

Once you have purchased one of the fixed-term Bonds, they cannot be added to, but you can buy more separate Bonds while they are still on sale.

After the funds have been invested, they cannot be accessed until the end of the three-year term.

Chancellor Jeremy Hunt announced the Bonds in his Spring Budget, in efforts to unlock more investment in UK industry.

He also set out plans for an additional ISA allowance of £5,000, with the extra amount to be used for investments in UK equity.

The proposal for the extra allowance is currently under consultation, until June this year.

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