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NS&I has boosted the rates of its British Savings Bonds to up to 4.2% AER and has launched new issues of one, two, three and five year fixed-rate bonds.
British Savings Bonds are fixed-term Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds.
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.
She added: “You can still do better elsewhere though. The rises aren’t enough to get any of these deals into the top ten accounts across any period.”
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% government guarantee.
“Today’s changes ensure we continue to balance the interests of savers, taxpayers and the broader financial services sector.”
The interest rate on the 1-year Growth option has climbed to 4.2% gross/AER from 4.04%. The rate on the Income option has been increased to 4.13% gross/4.2% AER from 3.97% gross.
There have been similar increases in the growth and income bonds over two, three and five years, as the table below shows.
|
Product |
Previous interest rate (from 2 September 2025) |
New interest rate from 7 November 2025 (on general sale) |
|
Guaranteed Growth Bonds 1-year (Issue 87) |
4.04% gross/AER |
4.20% gross/AER |
|
Guaranteed Income Bonds 1-year (Issue 87) |
3.97% gross/4.04% AER |
4.13% gross/4.20% AER |
|
|
||
|
Product |
Previous interest rate (from 3 July 2025) |
New interest rate from 7 November 2025 (on general sale) |
|
Guaranteed Growth Bonds 2-year (Issue 75) |
3.85% gross/AER |
4.10% gross/AER |
|
Guaranteed Income Bonds 2-year (Issue 75) |
3.79% gross/3.85% AER |
4.03% gross/4.10% AER |
|
Guaranteed Growth Bonds 3-year (Issue 77) |
3.88% gross/AER |
4.16% gross/AER |
|
Guaranteed Income Bonds 3-year (Issue 77) |
3.82% gross/3.88% AER |
4.09% gross/4.16% AER |
|
Guaranteed Growth Bonds 5-year (Issue 69) |
3.84% gross/AER |
4.15% gross/AER |
|
Guaranteed Income Bonds 5-year (Issue 69) |
3.78% gross/3.84% AER |
4.08% gross/4.15% AER |
Source: NS&I
Guaranteed Growth Bonds and Guaranteed Income Bonds are available to customers wanting a guaranteed rate for a fixed-term of 1, 2, 3 or 5 years.
Funds cannot be withdrawn early with fixed-term accounts. Savers will need a minimum investment of £500 and can invest a maximum of £1m per person in each Issue. After the fixed-term period, savers will have the choice to withdraw their cash or reinvest into a new term.