Interest rate increases for selected NS&I products from today

• New Issues of fixed-term British Savings Bonds (Guaranteed Growth, and Guaranteed Income Bonds) go on sale today with increased interest rates 
• Rates increased for all terms: 1, 2 ,3 and 5-year bonds

New Issues of NS&I’s 1, 2, 3 and 5-year fixed-term British Savings Bonds (Guaranteed Growth (GGB), and Guaranteed Income Bonds (GIB) have gone on sale today with increased interest rates for both new and maturing customers. NS&I has also increased the interest rate on its Investment Account.

British Savings Bonds are fixed-term Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds. They are available to new customers, and those with existing Bonds which are due to mature.

Today’s rate increases reflect changes in the wider market and will help NS&I to meet its Net Financing target while continuing to balance the interests of savers, taxpayers and the broader financial services sector.

The new interest rate on the 1-year Growth option is 4.50% gross/AER, and the Income option is 4.41% gross/4.50% AER.

The new interest rate on the 2-year Growth option is 4.48% gross/AER, and the Income option is 4.40% gross/4.48% AER.

The new interest rate on the 3-year Growth option is 4.45% gross/AER, and the Income option is 4.37% gross/4.45% AER.

The new interest rate on the 5-year Growth option is 4.40% gross/AER, and the Income option is 4.32% gross/4.40% AER.

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 Funds cannot be withdrawn early with fixed-term accounts.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.

In addition, the interest rate for NS&I’s postal only Investment Account also increases from today:

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Notes to Editors:

1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to more than 24 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.

2. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year, the gross rate quoted and the AER will be the same.

3. The gross rate is the rate of interest paid before the deduction of UK Income Tax.

4. Guaranteed Growth Bonds are a lump sum investment that earns a fixed rate of interest over a set period of time (called ‘investment term’). Guaranteed Growth Bonds are designed to be held for the full term. Interest is calculated daily and paid when the product matures. The interest earned will count towards taxable income in the tax year the Bond matures if the individual’s threshold has been met.

5. Guaranteed Income Bonds are a lump sum investment that pays out monthly income at a fixed rate of interest over a set period of time (called ‘investment term’). Interest is calculated daily and is paid into the customer’s nominated bank account.

6. Net Financing is the measure of the net change of NS&I funds, meaning total inflows from deposits, retention of maturing monies and capitalised accrued interest, less the total outflows from withdrawals and interest or Premium Bonds prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.

7. The Net Financing target for 2026-27 is £15 billion (+/- £4 billion).

8. Information on NS&I’s on sale products can be found here .

9. NS&I photography and logos are available to download here .