National Savings and Investments (NS&I) has increased interest rates on a range of its fixed-term British Savings Bonds, affecting accounts with balances between £500 and £1 million. The Government-backed savings provider announced the changes on Tuesday, October 6.
The rate increases apply to new issues of the one, two, three and five-year fixed-term British Savings Bonds, covering both Guaranteed Growth Bonds (GGB) and Guaranteed Income Bonds (GIB). The new issues are available to both new and maturing customers.
Rate changes reflect wider savings market
NS&I said the rate increases reflect changes in the wider savings market and will help the savings giant meet its Net Financing target, while continuing to balance the interests of savers, taxpayers and the broader financial services sector.
Andrew Westhead, NS&I Retail Director, said: “We’re pleased to be increasing interest rates across our 1, 2, 3, and 5-year British Savings Bonds, responding to changes in the wider market and giving savers the certainty of a guaranteed return for the duration of their chosen term.”
“Alongside these improved rates, customers continue to benefit from the reassurance that all money invested with NS&I is 100% secure and backed by HM Treasury.”
Terms and new rates for British Savings Bonds
British Savings Bonds, both GGB and GIB, are available to customers wanting a guaranteed interest rate for fixed terms of 1, 2, 3 or 5 years. Funds cannot be withdrawn early with fixed-term accounts. Savers must invest a minimum of £500 and a maximum of £1 million per person in each issue. After the fixed-term period, savers can choose to withdraw their cash or reinvest into a new term.
The new interest rate on the 1-year Growth option is 4.99% gross/AER, and the Income option is 4.88% gross/4.99% AER. The new interest rate on the 2-year Growth option is 5.07% gross/AER, and the Income option is 4.96% gross/5.07% AER.
The new interest rate on the 3-year Growth option is 5.10% gross/AER, and the Income option is 4.99% gross/5.10% AER. The new interest rate on the 5-year Growth option is 5.17% gross/AER, and the Income option is 5.06% gross/5.17% AER.
