The new issues will pay savers 6.2% gross/AER for a one-year fixed rate Guaranteed Growth Bond and 6.03% gross/6.20% AER on Guaranteed Income Bonds.

The rate is up to 1.2 percentage points higher than previous rates.

NS&I says that interest rates are also being increased for existing customers with two, three and five-year bonds when their current holding reaches maturity. The two, three and five-year products are only available to existing customers with maturing products and are not open to new customers.

One year fixed rates are open to all savers.

Savings rates have soared in the past few months as the Bank of England has pushed up the base rate.

The previous rate offered on the Guaranteed Growth Bond (1-year) was 5% gross/AER and the same on the Guaranteed Income Bond (1-year)

Guaranteed Growth Bonds and Guaranteed Income Bonds one-year fixed rate issues are open to all savers who want to fix for one year at a guaranteed rate. Savers will need a minimum investment of £500 and a maximum of £1 million in each issue. After one year, savers will have the choice to withdraw their cash or reinvest.

Fixed-term savings products (on sale from 30 August)

Source:NS&I

NS&I is one of the UK’s largest savings organisations and has over 24 million customers.