Millions of savers can now earn higher returns on their cash after NS&I increased rates across its range of fixed-term savings products.
The Government-backed provider has boosted rates on both its British Savings Bonds and Green Savings Bonds, with the changes taking effect from today.
NS&I’s one-year Guaranteed Growth Bond now pays 4.69 per cent AER, up from 4.50 per cent previously.
New issues of one, two, three and five-year bonds are available immediately to both new customers and savers with maturing investments.
The changes reflect movements in the wider savings market and are intended to help NS&I meet its Net Financing targets while balancing the interests of savers, taxpayers and the broader financial services sector.
Within the British Savings Bonds range, the two-year Growth Bond now pays 4.67 per cent AER, while the two-year Income Bond offers 4.58 per cent gross, equivalent to 4.67 per cent AER.
For three-year terms, the Growth Bond pays 4.65 per cent AER and the Income Bond pays 4.56 per cent gross, equivalent to 4.65 per cent AER.
The five-year Growth Bond offers 4.55 per cent AER, while the five-year Income Bond pays 4.46 per cent gross, equivalent to 4.55 per cent AER.
Savers must deposit at least £500 to open a British Savings Bond account and can invest up to £1million per person in each issue.
Money is locked away for the full term, meaning withdrawals cannot be made before the bond matures.
Green Savings Bonds have received the largest increase, with the rate on the new three-year fixed-term issue rising from 3.82 per cent to 4.45 per cent AER.
NS&I’s one-year Guaranteed Growth Bond now pays 4.69 per cent AER,
|
NS&I
These accounts require a minimum investment of £100 and allow savers to invest up to £100,000 per person in each issue.
Purchasers must be at least 16 years old, and deposits cannot be accessed during the three-year term.
These bonds help finance environmentally focused government initiatives through the UK Government Green Financing Framework, which was expanded in November 2025 to encompass nuclear energy projects.
Sarah Coles, head of personal finance at AJ Bell, said NS&I’s latest rate increases reflect the intense competition currently taking place in the savings market. She noted that while expectations for future interest rates have fallen, banks continue to offer attractive fixed-rate deals, forcing NS&I to raise rates again to remain competitive.
The new rates are available from today
|
GETTYMs Coles suggested the decision to offer its highest rate on a one-year bond may be an attempt to attract more deposits, as “the one-year market takes more money than any of the other fixed rate periods”.
She also highlighted NS&I’s ambitious £15billion fundraising target, adding that the organisation may be hoping the higher rates help reverse recent weak inflows and draw more savers’ cash.
Funding levels are determined jointly by HM Treasury and NS&I alongside gilts from the Debt Management Office.
Andrew Westhead, NS&I Retail Director, said: “We regularly review our products to ensure they reflect current market conditions, and today’s increases respond to changes in the fixed-term savings market.
The Treasury guarantee means savers face no risk to their capital
|
GETTY
“Our fixed-rate Bonds offer savers the choice of different term lengths with the certainty of knowing the interest rate they will receive over the full term, alongside the reassurance that all money invested with NS&I is 100% secure, backed by HM Treasury.”
The Treasury guarantee means savers face no risk to their capital, distinguishing NS&I from other providers covered by the Financial Services Compensation Scheme.
NS&I ranks among Britain’s largest savings organisations, serving more than 24 million customers nationwide.
NS&I’s new rates from June 23, 2026
British Savings Bonds
- 1-year Guaranteed Growth Bond: 4.69 per cent (up from 4.50 per cent)
- 1-year Guaranteed Income Bond: 4.69 per cent AER (up from 4.50 per cent)
- 2-year Guaranteed Growth Bond: 4.67 per cent (up from 4.48 per cent)
- 2-year Guaranteed Income Bond: 4.67 per cent AER (up from 4.48 per cent)
- 3-year Guaranteed Growth Bond: 4.65 per cent (up from 4.45 per cent)
- 3-year Guaranteed Income Bond: 4.65 per cent AER (up from 4.45 per cent)
- 5-year Guaranteed Growth Bond: 4.55 per cent (up from 4.40 per cent)
- 5-year Guaranteed Income Bond: 4.55 per cent AER (up from 4.40 per cent)
Green Savings Bonds
- 3-year Green Savings Bond: 4.45 per cent (up from 3.82 per cent)