- Interest rate reductions for some of NS&I’s fixed-term products, effective from today, 11 September 2024
- Changes will ensure NS&I’s interest rates are positioned appropriately in the wider market and help NS&I to balance the interests of its savers, taxpayers and broader financial service sector
New Issues of NS&I’s 2-year, 3-year and 5-year British Savings Bonds have gone on sale today, 11 September 2024, with new interest rates reflecting the changing savings market.
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 4.25% gross/AER. The new interest rate on the Income option is 4.17% gross / 4.25% AER.
The new interest rate on the 3-year Growth option is 4.00% gross/AER and the Income option is 3.93% gross / 4.00% AER.
The new interest rate on the 5-year Growth option is 3.90% gross/AER and the Income option is 3.83% gross / 3.90% AER.
NS&I Chief Executive, Dax Harkins, said:
“Our 2-, 3- and 5-year fixed-term Bonds continue to offer savers increased choice, a fair return and longer-term security in a changing market.
“These changes ensure our interest rates are set at an appropriate position and continue to balance the interests of savers, taxpayers and the stability of the broader financial services sector.”
Fixed-term savings products
| Product | Previous interest rate (from 6 August 2024) |
Interest rate from 11 September 2024 (change in brackets)
|
|
Guaranteed Growth Bonds (2-years) |
4.60% gross/AER | 4.25% gross/AER |
|
Guaranteed Growth Bonds (3-years) |
4.35% gross/AER | 4.00% gross/AER |
|
Guaranteed Growth Bonds (5-years) |
4.10% gross/AER | 3.90% gross/AER |
|
Guaranteed Income Bonds (2-years) |
4.50% gross / 4.60% AER | 4.17% gross / 4.25% AER |
|
Guaranteed Income Bonds (3-years) |
4.26% gross / 4.35% AER | 3.93% gross / 4.00% AER |
|
Guaranteed Income Bonds (5-years) |
4.02% gross / 4.10% AER | 3.83% gross / 3.90% AER |
–Ends–
Notes to Editors
- 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.
- 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.
- 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.
- Information on NS&I’s on sale products can be found here .
- Information on NS&I’s off sale products can be found here .
- Product figures as at 31 March 2024:
| Product | Number of customers as at 31 March 2024 |
Holding balance as at 31 March 2024
|
| Guaranteed Growth Bonds | Circa 477,000 | £21.42 billion |
| Guaranteed Income Bonds | Circa 81,000 | £7.45 billion |