NS&I offers highest ever interest rate for one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds
- New Issues of one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds are on sale from today at 6.20% gross/AER and 6.03% gross/6.20% AER respectively
- Highest ever interest rate for Guaranteed Growth Bonds and Guaranteed Income Bonds since they first went on sale in 2008
- Rate increases for customers renewing two, three and five-year Guaranteed Growth Bonds and Guaranteed Income Bonds at maturity
NS&I is releasing new Issues of its one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds available to new and existing customers from today. The new Issues offer savers 6.20% gross/AER for one-year fixed rate Guaranteed Growth Bonds and 6.03% gross/6.20% AER for Guaranteed Income Bonds.
These rates for Guaranteed Growth Bonds and Guaranteed Income Bonds are the highest offered across NS&I’s product range as of today. Interest rates are also being increased for existing customers with two, three and five-year Bonds when their current holding reaches maturity.
Economic Secretary to the Treasury Andrew Griffith, said:
“It’s vital that savers are able to benefit from recent interest rate rises, so I’m delighted that NS&I is releasing new Issues of Guaranteed Growth Bonds and Guaranteed Investment Bonds at over 6% - the highest rate since they were launched.
“For further peace of mind, the Treasury provides a 100% guarantee on these savings”.
NS&I Chief Executive, Dax Harkins, said:
“It was great to be able to bring back on sale our one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds in February last year. Today, we are able to offer new Issues with an improved interest rate for customers wanting the certainty of knowing how much they will be earning on their savings for one year.
“At the same time, existing customers with maturing Bonds can choose to invest at new higher rates for two, three and five-year Guaranteed Growth Bonds and Guaranteed Income Bonds.”
Guaranteed Growth Bonds and Guaranteed Income Bonds one-year fixed rate Issues are open to savers wishing to fix for one year at a guaranteed rate. Savers will need 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.
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 dynamic savings market to ensure that its products are priced appropriately and continue to balance the interests of savers, taxpayers and the broader financial services sector.
Fixed-term savings products (on sale from 30 August 2023)
|
Product |
Previous interest rate (from 13 July 2023) |
New interest rate from 30 August 2023 (change in brackets) |
|
Guaranteed Growth Bonds (1-year) |
5.00% gross/AER |
6.20% gross/AER (+1.20 percentage points) |
|
Guaranteed Income Bonds (1-year) |
5.00% gross/5.12% AER |
6.03% gross/6.20% AER (+1.03 percentage points) |
Fixed-term savings products (not on sale but available to customers with maturing products)
|
Product |
Previous interest rate |
New interest rate from 30 August 2023 (change in brackets) |
|
Guaranteed Growth Bonds (2-year) |
5.10% gross/AER (from 13 July 2023) |
5.80% gross/AER (+0.70 percentage points) |
|
Guaranteed Growth Bonds (3-year) |
5.10% gross/AER (from 13 July 2023) |
5.80% gross/AER (+0.70 percentage points) |
|
Guaranteed Growth Bonds (5-year) |
4.25% gross/AER (from 1 February 2023) |
5.50% gross/AER (+1.25 percentage points) |
|
Guaranteed Income Bonds (2-year) |
5.10% gross/5.22% AER (from 13 July 2023) |
5.65% gross/5.80% AER (+0.55 percentage points) |
|
Guaranteed Income Bonds (3-year) |
5.10% gross/5.22% AER (from 13 July 2023) |
5.65% gross/5.80% AER (+0.55 percentage points) |
|
Guaranteed Income Bonds (5-year) |
4.15% gross/4.23% AER (from 1 February 2023) |
5.37% gross/5.50% AER (+1.22 percentage points) |
–Ends–
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 backed by HM Treasury.
2. 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.
3. 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.
4. 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.
5. Information on NS&I’s on sale products can be found here .
6. Information on NS&I’s off sale products can be found here .
7. Guaranteed Growth Bonds and Guaranteed Income Bonds originally went on sale in 2008 at 3.95% gross/AER and 3.85% gross/3.92% AER respectively.
8. Product figures as at 31 March 2023:
|
Product |
Number of customers |
Number of accounts as at 31 March 2023 |
Holding balance as at 31 March 2023 |
|
Guaranteed Growth Bonds |
377,256 |
513,358 |
£9,514,007,940 |
|
Guaranteed Income Bonds |
25,966 |
39,518 |
£2,337,118,564 |