- New 2- and 5-year fixed rate British Savings Bonds on sale today, increasing choice for savers
- Interest rate increase for existing 3-year fixed rate British Savings Bonds
NS&I is today increasing the choice available to savers looking for the security of guaranteed fixed rates with the release of new 2- and 5-year Issues of British Savings Bonds. NS&I is also increasing the interest rate on the existing 3-year fixed-term British Savings Bonds.
British Savings Bonds are fixed-term Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds.
The 2-year Growth option offers savers 4.60% gross/AER, and the Income option offers 4.50% gross/4.60% AER.
Savers investing in the 5-year Growth option will receive 4.10% gross/AER. The Income option offers 4.02% gross/4.10% AER.
The interest rate on the existing 3-year British Savings Bonds is also increasing for new investors today. The 3-year Growth option offers savers 4.35% gross/AER, and the Income option offers 4.26% gross/4.35% AER.
NS&I Chief Executive, Dax Harkins, said:“It is 15 years since we last had 2- and 5-year fixed-term Bonds on general sale to new investments. The two new Issues, along with a rate increase for our 3-year Bonds, provide NS&I savers with increased choice and longer-term security in a changing market.
“Today’s changes will help us to meet our Net Financing target while continuing to balance the interests of savers, taxpayers and the broader financial services sector.”
The 2-, 3- and 5-year fixed-rate Growth and Income Bonds are open to savers wishing to fix at a guaranteed rate for the whole term. Savers will need a minimum investment of £500 and can invest a maximum of £1 million in each Issue. After the fixed-term period, savers will have the choice to withdraw their cash or reinvest into a new term.
The 2- and 5-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds were last on general sale to new investments in October 2009.
The 1-year option is only available to existing customers with maturing products and is not open to new customers.
New fixed-term savings products – on sale from 6 August 2024
| Product | Previous interest rate (not on general sale, and only available for customers with maturing bonds) | New interest rate from 6 August 2024 (on general sale to new customers) |
| Guaranteed Growth Bonds (2-year) | 4.25% gross/AER (from 3 April 2024) | 4.60% gross/AER |
| Guaranteed Growth Bonds (5-year) | 3.90% gross/AER (from 3 April 2024) | 4.10% gross/AER |
| Guaranteed Income Bonds (2-year) | 4.17% gross/4.25% AER (from 3 April 2024) | 4.50% gross/4.60% AER |
| Guaranteed Income Bonds (5-year) | 3.83% gross/3.90% AER (from 3 April 2024) | 4.02% gross/4.10% AER |
Fixed-term savings products – already on sale
| Product | Previous interest rate | New interest rate from 6 August 2024 |
| Guaranteed Growth Bonds (3-year) | 4.15% gross/AER (from 3 April 2024) | 4.35% gross/AER |
| Guaranteed Income Bonds (3-year) | 4.07% gross/4.15% AER (from 3 April 2024) | 4.26% gross/4.35% AER |
Fixed-term savings products - not on general sale but available to existing customers with maturing products
| Product | Interest rate (from 25 July 2024) |
|
Guaranteed Growth Bonds (1-year) Off sale |
5.15% gross/AER |
|
Guaranteed Income Bonds (1-year) Off sale |
5.03% gross/5.15% AER |
–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. Product figures as of 31 March 2024:
| Product | Number of customers as of 31 March 2024 | Holding balance as of 31 March 2024 |
| Guaranteed Growth Bonds | Circa 477,000 | £21.42 billion |
| Guaranteed Income Bonds | Circa 81,000 | £7.45 billion |