New Issues of NS&I 2, 3 and 5-year British Savings Bonds, plus new Junior ISA interest rate
- 2, 3 and 5-year Issues of British Savings Bonds on sale from today
- New interest rate announced for NS&I’s Junior ISA from 18 July
New Issues of 2, 3 and 5-year British Savings Bonds (Guaranteed Growth Bonds and Guaranteed Income Bonds) have gone on sale today for new and maturing customers. A new Junior ISA interest rate also applies from 18 July.
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 3.85% gross/AER, and the Income option is 3.79% gross / 3.85% AER.
The new interest rate on the 3-year Growth option is 3.88% gross/AER, and the Income option is 3.82% gross / 3.88% AER.
The new interest rate on the 5-year Growth option is 3.84% gross/AER, and the Income option is 3.78% gross / 3.84% AER.
There is no change to 1-year British Savings Bonds. The 1-year Growth option remains at 4.05% gross/AER, and the Income option is 3.98% gross / 4.05% AER.
Alongside this, NS&I’s Junior ISA will now offer 3.55% AER (tax-free) to savers under the age of 18. This is the first interest rate change since 18 August 2023, when it was 4.00% AER (tax-free).
Andrew Westhead, NS&I Retail Director, said: "Today’s announcement is in response to changes in the wider market and will ensure we continue to offer a range of fixed-term options while balancing the interests of savers, taxpayers and the broader financial services sector.
“This is the first change to our Junior ISA interest rate in nearly two years, reflecting our ongoing commitment to helping young people save for their future.”
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 Funds cannot be withdrawn early with fixed-term accounts.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 £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.
Product | Previous interest rate (from 15 April 2025) | New interest rate from 3 July 2025 (on general sale) |
Guaranteed Growth Bonds 2-year (Issue 74) | 4.00% gross/AER | 3.85% gross/AER |
Guaranteed Income Bonds 2-year (Issue 74) | 3.93% gross/4.00% AER | 3.79% gross/3.85% AER |
Guaranteed Growth Bonds 3-year (Issue 76) | 4.10% gross/AER | 3.88% gross/AER |
Guaranteed Income Bonds 3-year (Issue 76) | 4.03% gross/4.10% AER | 3.82% gross/3.88% AER |
Guaranteed Growth Bonds 5-year (Issue 68) | 4.06% gross/AER | 3.84% gross/AER |
Guaranteed Income Bonds 5-year (Issue 68) | 3.99% gross/4.06% AER | 3.78% gross/3.84% AER |
Product | Previous interest rate (from 18 August 2023) | New interest rate from 18 July 2025 |
Junior ISA | 4.00% AER (tax-free) | 3.55% AER (tax-free) |
Notes to Editors
- 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.
- 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.
- 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 is added to the Bond on each anniversary of the investment.
- 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.
- Junior ISA is a tax-free savings long-term savings account for children up to the age of 18. Between £1 to £9,000 can be invested in the 2025/26 tax year.
- 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.
- The Net Financing target for 2025-26 is £12 billion (+/- £4 billion).
- Information on NS&I’s on sale products can be found here.
- NS&I photography and logos are available to download here.