Seems like a good deal for 1yr fixed rate. Capital is 100% guaranteed as backed by goverment.
Guaranteed Growth Bonds
Grow your money at guaranteed rates
NS&I Guaranteed Growth Bonds give you a guaranteed return on your investment, so you can plan confidently for your future. They also offer a choice of fixed rate terms, so you can choose which one suits you best.
>>>> 1-year Issue 48 - Guaranteed rate for first year 3.95% 3.16% <<<<<<
Can be cashed in early, with a penalty equal to 90 days interest
Apply online, by phone or by post; cash in by post. Some Issues may be exclusively available online and/or by phone. No longer available at Post Office® branches