NS&I has hiked rates on eight of its fixed-rate savings accounts for the second time in two months.
The Treasury-backed bank has improved the rate on its one, two, three and five-year fixed rate accounts, with several now paying more than 5%.
It comes as NS&I strives to meet its net financing target of £15 billion for the 2026/27 tax year, up from £13 billion in 2025/26.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Andrew Westhead, retail director at NS&I, said the move to increase interest rates comes in response to changes across the wider savings market.
Latest Videos FromMoneyWeek
What NS&I savings accounts have improved interest rates?
NS&I has raised rates on its British Savings Bonds, made up of Guaranteed Growth and Guaranteed Income Bonds, from today (6 October).
NS&I last increased rates on the accounts in August.
All eight of the accounts are fixed-rate, but the Guaranteed Growth Bonds pay out interest annually while the Guaranteed Income Bonds pay interest monthly.
The Guaranteed Growth and Guaranteed Income one-year bond rates have been increased to 4.99% gross/AER and 4.88% gross/4.99% AER, respectively.
The Guaranteed Growth and Guaranteed Income two-year bond rates have been hiked to 5.07% gross/AER and 4.96% gross/5.07% AER, respectively.
Rates on the Guaranteed Growth and Guaranteed Income three-year bonds are now 5.10% gross/AER and 4.99% gross/5.10% AER, respectively.
The Guaranteed Growth and Guaranteed Income five-year bond interest rates have been raised to 5.17% gross/AER and 5.06% gross/5.17% AER, respectively.
Swipe to scroll horizontally
Product
Previous interest rate (from 18 August 2026)
Product
New interest rate from 6 October 2026 (on general sale)
Guaranteed Growth Bonds 1-year (Issue 92)
4.82% gross/AER
Guaranteed Growth Bonds 1-year (Issue 93)
4.99% gross/AER
Guaranteed Income Bonds 1-year (Issue 92)
4.72% gross/4.82% AER
Guaranteed Income Bonds 1-year (Issue 93)
4.88% gross/4.99% AER
Guaranteed Growth Bonds 2-year (Issue 80)
4.81% gross/AER
Guaranteed Growth Bonds 2-year (Issue 81)
5.07% gross/AER
Guaranteed Income Bonds 2-year (Issue 80)
4.71% gross/4.81% AER
Guaranteed Income Bonds 2-year (Issue 81)
4.96% gross/5.07% AER
Guaranteed Growth Bonds 3-year (Issue 82)
4.83% gross/AER
Guaranteed Growth Bonds 3-year (Issue 83)
5.10% gross/AER
Guaranteed Income Bonds 3-year (Issue 82)
4.73% gross/4.83% AER
Guaranteed Income Bonds 3-year (Issue 83)
4.99% gross/5.10% AER
Guaranteed Growth Bonds 5-year (Issue 74)
4.85% gross/AER
Guaranteed Growth Bonds 5-year (Issue 75)
5.17% gross/AER
Guaranteed Income Bonds 5-year (Issue 74)
4.75% gross/4.85% AER
Guaranteed Income Bonds 5-year (Issue 75)
5.06% gross/5.17% AER
Source: NS&I
How do the British Savings Bonds compare to the rest of the market?
All eight of the British Savings Bonds were already competitive before these changes and they’ve now shot up the best buy tables.
The one-year bonds can be beaten only by thisbank’s one-year bond which is paying 5.10% at the time of writing, while the two-year deals are the fourth best on the market in terms of headline interest rate.
Meanwhile NS&I’s three and five-year bonds are among the top three for the highest interest rates for those types of account.
These rankings are based on an initial investment amount of £500 and comparing deals on data firm Moneyfacts’ website.
Rachel Springall, finance expert at data firm Moneyfacts, said NS&I’s latest interest rate rises are “likely to grab the attention of savers looking for a guaranteed return, particularly those who value the reassurance of having their money 100% backed by HM Treasury.”
Springall added: “The rate rises from NS&I reflect the wider uplift in savings rates and expectations surrounding future interest rate decisions.
“Competition in the savings market is good news for consumers, but attractive deals don’t always last for long, particularly if a provider attracts enough deposits and pulls a product from sale.”
Operator Good day, and thank you for standing by. Welcome to Karoon Energy First Half 2026 Results. [Operator Instructions] Please be advised that today’s conference call is being recorded. I would now like to hand the conference over to your first speaker today, Carri Lockhart, Chief Executive Officer and Managing Director of Karoon Energy. Please…
12:01 AM, 28th July 2026, 18 hours ago Landlord company registrations rose from 1,882 in 2000 to a record 34,128 in 2025, an increase of more than 1,700%, according to an analysis of Companies House records. Nearly 14,000 more businesses were incorporated during the first five months of 2026, continuing a sharp rise in landlords…
TAIPEI and SAN DIEGO, Aug. 12, 2026 /PRNewswire/ — Senhwa Biosciences, Inc. (TPEx: 6492) today announced a significant research advance involving its investigational drug Pidnarulex (CX-5461). A multinational research team comprising investigators from Poland, Slovakia, France and Senhwa Biosciences in Taiwan found that, under specific cell-based experimental conditions, controlled light activation increased the cancer-cell-killing activity…
Two long slides, accessible by foot or wheel, connect the upper tree-themed play structures to the lower lagoon-themed play areas. The slides are shaded by a canopy, which is nice since they are metal and would probably get fairly hot when the sun is out. While we were visiting, an attendant was monitoring slide usage,…
In a positive sign for sales of newly constructed homes, mortgage applications for these properties were up in June versus one year prior, although normal seasonality kicked in compared with May’s activity. Processing Content Furthermore, sales trends for these properties are on the upswing, another reason lenders need to keep an eye on this segment,…
