National Savings and Investments (NS&I) has unveiled higher interest rates for its fixed-term bonds starting today, bucking the prevailing trend of reductions across the savings market.
The Government-backed institution has enhanced returns on both its Guaranteed Growth and Income Bonds, offering terms ranging from one to five years.
The move represents a notable departure from the broader financial landscape, where providers have been trimming rates following successive Bank of England base rate reductions.
Fixed-term savers can now access improved returns, though minimum deposits of £500 apply with maximum investments capped at £1million per person for each issue.
These accounts require funds to remain locked away for the entire term, with no option for early access.
Latest NS&I Guaranteed Bond Rates (from November 7 2025)
Here is a list of updated interest rates for NS&I Guaranteed Growth and Income Bonds now on general sale:
Guaranteed Growth Bonds
- 1-year (Issue 87) – 4.20 per cent gross/AER (previously 4.40 per cent)
- 2-year (Issue 86) – 4.10 per cent gross/AER (previously 4.25 per cent)
- 2-year (Issue 75) – 4.10 per cent gross/AER (previously 3.90 per cent)
NS&I raises fixed-term bond rates from today, defying wider savings market cuts
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Guaranteed Income Bonds
- 1-year (Issue 77) – 4.05 per cent gross / 4.15 per cent AER (previously 3.75 per cent gross / 3.85 per cent AER)
- 2-year (Issue 76) – 4.16 per cent gross / 4.26 per cent AER (previously 3.88 per cent gross / 3.98 per cent AER)
- 3-year (Issue 73) – 4.15 per cent gross / 4.25 per cent AER (previously 3.85 per cent gross / 3.95 per cent AER)
- 5-year (Issue 69) – 4.08 per cent gross / 4.15 per cent AER (previously 3.78 per cent gross / 3.84 per cent AER)
Mr Andrew Westhead, NS&I retail director, said: “I’m pleased that we can offer increased interest rates on these fixed-term products, giving savers who want guaranteed returns a choice in how they invest, while continuing to benefit from the security of the 100 per cent Government guarantee. “
The products maintain their Treasury-backed security, protecting deposits in full regardless of amount.
Financial services experts suggest the timing reflects strategic fundraising efforts by NS&I.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “NS&I has pulled out all the stops and made fairly chunky increases across the board.
“This flies in the face of cuts elsewhere in the market, so it’s clearly a major effort to raise funds.”
The increases arrive as numerous fixed-term accounts reach maturity, potentially releasing substantial sums seeking new homes.
The rate rises coincide with a wave of maturing fixed-term accounts, freeing up billions in capital looking for reinvestment options
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Market conditions have seen steady downward pressure on savings rates following monetary policy decisions, with Thursday’s closely contested Bank of England vote signalling further reductions ahead.
Ms Coles said: “The fact NS&I has taken a step in the opposite direction is highly likely to be driven by a desire to get more money in through the door, to meet its funding targets.”
Despite the improvements, these rates remain outside the most competitive offerings available.
She added: “You can still do better elsewhere though,” highlighting that none of the enhanced NS&I products feature among the top ten accounts for any term length.
Higher rates are often available from online banks and specialist savings platforms
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Superior returns can typically be found through internet-based banks and dedicated savings platforms.
For those managing substantial deposits exceeding £85,000, cash savings platforms present an efficient solution, enabling funds to be distributed across multiple institutions through a single application process.
Ms Coles said: “Cash savings platforms let you spread your money across accounts with a number of different banks, with one application.
“You can also manage it all in one place, so you don’t need to rely on NS&I unless you really want to.”