NS&I launches new issues of British Savings Bonds - full list of 'higher rates'

These bonds represent fixed-term versions of NS&I's Guaranteed Growth Bonds and Guaranteed Income Bonds, available both to newcomers and existing customers whose bonds are approaching maturity.

According to NS&I, the improved rates reflect shifts in the broader savings market and will assist the organisation in achieving its net financing objectives whilst maintaining a balance between the needs of savers, taxpayers and the wider financial services industry.

The announcement arrives during a competitive period for savings products, with numerous providers launching attractive deals throughout April's Isa season.

Beyond the headline one-year rate, savers can also access two-year bonds now paying 4.48 per cent AER, up from 3.98 per cent previously.

The three-year option has risen to 4.45 per cent AER from 4.02 per cent, whilst those willing to lock away funds for five years will receive 4.40 per cent AER, an improvement on the former 4.05 per cent.

These products are designed for customers seeking guaranteed returns over a set period, with one crucial caveat: funds remain inaccessible until the term concludes.

NS&I interest rate changes (from 28 April 2026):

• Guaranteed Growth Bond 1-year (Issue 89): 4.07 per cent → 4.50 per cent AER
• Guaranteed Income Bond 1-year (Issue 89): 4.00 per cent (4.07 per cent AER) → 4.41 per cent (4.50 per cent AER)
• Guaranteed Growth Bond 2-year (Issue 77): 3.98 per cent → 4.48 per cent AER
• Guaranteed Income Bond 2-year (Issue 77): 3.91 per cent (3.98 per cent AER) → 4.40 per cent (4.48 per cent AER)
• Guaranteed Growth Bond 3-year (Issue 79): 4.02 per cent → 4.45 per cent AER
• Guaranteed Income Bond 3-year (Issue 79): 3.95 per cent (4.02 per cent AER) → 4.37 per cent (4.45 per cent AER)
• Guaranteed Growth Bond 5-year (Issue 71): 4.05 per cent → 4.40 per cent AER
• Guaranteed Income Bond 5-year (Issue 71): 3.98 per cent (4.05 per cent AER) → 4.32 per cent (4.40 per cent AER)
• Investment Account (postal only): 1.00 per cent → 2.05 per cent AER

Early withdrawal is simply not an option with British Savings Bonds.

Once the fixed period ends, bondholders can either take their money out or roll it into a new term at whatever rates apply at that time.

Prospective investors must commit at least £500 to open a British Savings Bond, though the ceiling extends to £1million per individual for each issue.

A defining characteristic of NS&I is its Treasury backing, which guarantees complete protection for deposited funds.

Unlike high street banks where savings are protected only up to £85,000 through the Financial Services Compensation Scheme, NS&I offers 100 per cent security regardless of the amount held.

This full government guarantee makes the provider particularly attractive to those with substantial sums to deposit.

The organisation has also boosted rates on its postal-only Investment Account, which now pays 2.05 per cent AER compared with the previous one per cent.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, noted that NS&I's popularity stems from its trusted reputation and complete capital protection.

"NS&I are popular because they are a trusted brand and provide 100% capital security, so these bonds may appeal to savers with big pots who are happy to forgo higher interest rates available elsewhere," she said.

However, she cautioned that those considering longer-term NS&I products should explore alternatives, as numerous bonds from other providers offer superior returns.

"This includes fixed returns from building societies, such the market-leading five-year bond from Market Harborough Building Society paying 4.70 per cent," Ms Springall added.

She also highlighted that savers affected by fiscal drag might prefer fixed-rate cash Isas to shield earnings from tax, pointing to Skipton Building Society's 18-month fixed Isa paying 4.55 per cent.

Sarah Coles, head of personal finance at AJ Bell, described the one-year offering as particularly competitive, observing that most savers prefer fixing for twelve months over longer periods.

"It's not a major surprise, given how rates have been rising elsewhere. NS&I has a duty to offer decent value for savers, so it couldn't reasonably sit on its hands offering just a fraction over four per cent," she said.

Ms Coles noted that NS&I has encountered difficulties this year and faces ambitious funding requirements, suggesting the organisation "has clearly decided that it needs to do something bold to start the year strong".

She acknowledged that superior rates remain available elsewhere for those seeking maximum returns.

"However, for those attached to the brand or drawn by the appeal of the 100% Treasury guarantee, the rate boost may be enough to tip the balance," Coles added.