NS&I has boosted the rates of its British Savings Bonds to up to 4.5% 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.
NS&I said today’s rate increases reflect changes in the wider market and will help it to meet its Net Financing target while continuing to balance the interests of savers, taxpayers and the broader financial services sector.
Sarah Coles, head of personal finance at AJ Bell, said: “NS&I is finally making more of an effort to keep up with the Joneses. These are significant rate bumps, putting the fixed rate accounts within shouting distance of the front-runners. The one-year deal is particularly strong, and given that savers are far more likely to fix for one year than any other period, NS&I is clearly working harder to attract more cash."
She said the increase was not a major surprise, given how rates have been rising elsewhere. "NS&I has a duty to offer decent value for savers, so it couldn’t reasonably sit on its hands offering just a fraction over 4%. It has also faced its share of bad news in 2026, and with a fairly punchy funding target of £15bn this financial year, it has clearly decided that it needs to do something bold to start the year strong."
The interest rate on the 1-year Growth option has climbed to 4.5% gross/AER from 4.2%. The rate on the Income option has been increased to 4.41% gross/4.5% 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 6 January 2026) | New interest rate from 28 April 2026 (on general sale) |
Guaranteed Growth Bonds 1-year (Issue 89) | 4.07% gross/AER | 4.50% gross/AER |
Guaranteed Income Bonds 1-year (Issue 89) | 4.00% gross/4.07% AER | 4.41% gross/4.50% AER |
Guaranteed Growth Bonds 2-year (Issue 77) | 3.98% gross/AER | 4.48% gross/AER |
Guaranteed Income Bonds 2-year (Issue 77) | 3.91% gross/3.98% AER | 4.40% gross/4.48% AER |
Guaranteed Growth Bonds 3-year (Issue 79) | 4.02% gross/AER | 4.45% gross/AER |
Guaranteed Income Bonds 3-year (Issue 79) | 3.95% gross/4.02% AER | 4.37% gross/4.45% AER |
Guaranteed Growth Bonds 5-year (Issue 71) | 4.05% gross/AER | 4.40% gross/AER |
Guaranteed Income Bonds 5-year (Issue 71) | 3.98% gross/4.05% AER | 4.32% gross/4.40% AER |
In addition, the interest rate for NS&I’s postal only Investment Account also increases from today:
Product | Previous interest rate (from 18 August 2023) | New interest rate from 28 April 2026 (on general sale) |
Investment Account | 1.00% gross/AER | 2.05% gross/AER |
Ms Coles said: “Savers can still do better in several accounts elsewhere, so anyone hunting for the best possible deal won’t be tempted by the changes. However, for those attached to the brand or drawn by the appeal of the 100% Treasury guarantee, the rate boost may be enough to tip the balance."
British Savings Bonds (GGB and GIB) are available to customers wanting a guaranteed interest 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 £1 million 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.