The chancellor announced in the Autumn Statement that NS&I is lively to launch a fixed savings bond in 2017.

Philip Hammond said the three-year bond would pay 2.20%.

Rachel Springall, finance spokesperson at Moneyfacts.co.uk, said: “The NS&I three-year fixed bond due to launch next year offers an outstanding rate compared to what is currently available on the market and it will be available for those aged 16 and over. Over a three-year term it is easily market-leading, and by paying 2.20% it would beat every single fixed savings bond on the market right now, hands down. That includes those fixed for up to a staggering seven years. However, savers must beware that the interest is only payable on balances of up to £3,000, which could deter investors who have a much larger pot.

“When NS&I launched the 65+ Guaranteed Growth Bonds in 2015, it caused a huge stir in the market. It was estimated that millions of savers applied for these Pensioner Bonds, with the one and three-year bonds paying 2.80% and 4.00% respectively.”

However, Calum Bennie, savings spokesperson at Scottish Friendly, said: “For savers the forthcoming savings bond is better than nothing but an interest rate of 2.2% is hardly likely to set the heather alight at a time of increasing inflation.

“This was not a budget for savers. Even with the proposed bond, savers are continuing to get very low returns. Those looking for a home for their money over the long term should continue to consider the growth potential of investing in stocks and shares ISAs.”