NS&I brings back one-year fixed rate Bonds for general sale
- New Issues of one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds are on sale from today at 4.00% gross/AER and 3.90% gross/3.97% AER respectively
- Close to half a million existing NS&I customers may also benefit from interest rate increases for Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates
NS&I is bringing back on sale its one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds and increasing interest rates for close to half a million existing customers.
Last on general sale in 2019, Guaranteed Growth Bonds and Guaranteed Income Bonds one-year fixed rate Issues will open up the opportunity for savers to invest for just one year with a minimum investment of £500 and a maximum of £1 million in each Issue. After one year, savers will have the choice to withdraw their cash or reinvest.
Today’s new Issues offer savers 4.00% gross/AER for one-year fixed rate Guaranteed Growth Bonds and 3.90% gross/3.97% AER for Guaranteed Income Bonds. These rates for Guaranteed Growth Bonds and Guaranteed Income Bonds are the highest since 2010, when they were respectively 3.20% and 3.15% gross/3.20% AER.
NS&I Chief Executive, Ian Ackerley, said: “It’s continuing to be an exciting time for savers and I’m pleased that we are able to bring back on general sale our popular one-year fixed-rate Bonds with two new Issues. Existing customers may also gain from a better deal when their current Bonds mature, with the option to renew with a higher interest rate.
“At the same time, by offering two new Issues today, we are continuing to balance the interests of savers, taxpayers and the broader financial services sector to support our Net Financing target which contributes to the funding of public services.”
Around 494,000 one, two, three or five-year Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates accounts may also benefit from the new interest rates when the Bonds and Certificates mature, if they choose to reinvest at maturity. The two, three and five-year products are only available to existing customers with maturing products and are not open to new customers.
NS&I has continued to respond to the current market to ensure that NS&I’s products are priced appropriately when compared with the rest of the savings market. This also ensures that NS&I continues to balance the interests of savers, taxpayers and the broader financial services sector.
Fixed-term savings products (on sale from 1 February 2023)
|
Product |
Previous interest rate (from 1 December 2022) |
New interest rate from 1 February 2023 (change in brackets) |
|
Guaranteed Growth Bonds (1-year) |
3.60% gross/AER |
4.00% gross/AER (+40 basis points) |
|
Guaranteed Income Bonds (1-year) |
3.50% gross/3.56% AER |
3.90% gross/3.97% AER (+40 basis points) |
Fixed-term savings products (not on sale but available to customers with maturing products)
|
Product |
Previous interest rate (from 1 December 2022) |
New interest rate from 1 February 2023 (change in brackets) |
|
Guaranteed Growth Bonds (2-year) |
3.65% gross/AER |
4.20% gross/AER (+55 basis points) |
|
Guaranteed Growth Bonds (3-year) |
3.70% gross/AER |
4.20% gross/AER (+50 basis points) |
|
Guaranteed Growth Bonds (5-year) |
3.80% gross/AER |
4.25% gross/AER (+45 basis points) |
|
Guaranteed Income Bonds (2-year) |
3.55% gross/3.61% AER |
4.10% gross/4.18% AER (+55 basis points) |
|
Guaranteed Income Bonds (3-year) |
3.60% gross/3.66% AER |
4.10% gross/4.18% AER (+50 basis points) |
|
Guaranteed Income Bonds (5-year) |
3.70% gross/3.76% AER |
4.15% gross/4.23% AER (+45 basis points) |
|
Fixed Interest Savings Certificates (2-year) |
3.40% tax-free/AER |
4.00% tax-free/AER (+60 basis points) |
|
Fixed Interest Savings Certificates (5-year) |
3.55% tax-free/AER |
4.05% tax-free/AER (+50 basis points) |
Notes to Editors
1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.
2. NS&I most recently announced changes to its off-sale fixed-rate products (Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates) on 25 October 2022. More information available here .
3. 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.
4. 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.
5. 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.
6. Tax-free means the interest is exempt from UK Income Tax and Capital Gains Tax.
7. Information on NS&I’s on sale products can be found here.
8. Information on NS&I’s off sale products can be found here.
9. Customer numbers as at 31 March 2022:
|
Guaranteed Growth Bonds |
c. 376,000 |
|
Guaranteed Income Bonds |
c. 22,000 |
|
Fixed Interest Savings Certificates |
c. 96,000 |
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