New Issues of 2- and 3-year British Savings Bonds

  • New Issues of NS&I’s 2- and 3-year British Savings Bonds go on sale today
  • New rates reflect changes in the wider market

New Issues of 2- and 3-year British Savings Bonds have gone on sale today, 3 December 2024 with lower interest rates, reflecting changes in the wider market. The changes 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.

British Savings Bonds are fixed-term Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds.

The new interest rate on the 2-year Growth option is 3.60% gross/AER, and the Income option is 3.54% gross / 3.60% AER.

The new interest rate on the 3-year Growth option is 3.50% gross/AER, and the Income option is 3.44% gross / 3.49% AER.

In addition, the 5-year options are no longer on sale to new customers but remain available to existing customers with fixed-term Issues at maturity.

 

Product

Previous interest rate (on sale from 22 October 2024)

New interest rate from 3 December 2024 (on general sale to new customers)

Guaranteed Growth Bonds (2-year) Issue 71

4.10% gross/AER

3.60% gross/AER

Guaranteed Income Bonds (2-year) Issue 71

4.02% gross/4.09% AER

3.54% gross/3.60% AER

 
 

Product

Previous interest rate (on sale from 11 September 2024)

New interest rate from 3 December 2024 (on general sale to new customers)

Guaranteed Growth Bonds (3-year) Issue 73

4.00% gross/AER

3.50% gross/AER

Guaranteed Income Bonds (3-year) Issue 73

3.93% gross/4.0% AER

3.44% gross/3.49% AER

 

Notes to Editors

  1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to over 24 million customers. All products offer 100% capital security as NS&I is back by HM Treasury.
  1. 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 rate quoted and the AER will be the same.
  1. 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.
  1. The Net Financing target for 2024-25 is £9 billion (+/- £4 billion).
  1. Information on NS&I’s on sale products can be found here .
  1. Information on NS&I’s off sale products can be found here .
  1. NS&I photography and logos are available to download here .

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