New Issues of NS&I's fixed-term Bonds at lower interest rates

• New Issues of fixed-term British Savings Bonds (GGB and GIB) on sale from today 
• Reduced interest rates for 1, 2, 3 and 5-year Guaranteed Growth, and Guaranteed Income Bonds options 

New Issues of NS&I’s 1, 2, 3 and 5-year fixed-term British Savings Bonds (Guaranteed Growth (GGB), and Guaranteed Income Bonds (GIB)) have gone on sale today at lower interest rates.

British Savings Bonds are fixed-term Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds. They are available to new customers, and those with existing Bonds which are due to mature.

Today’s changes reflect changes in the wider market and will help NS&I to meet its Net Financing target while continuing to balance the interests of savers, taxpayers and the broader financial services sector.

The new interest rate on the 1-year Growth option is 4.07% gross/AER, and the Income option is 4.00% gross/4.07% AER.

The new interest rate on the 2-year Growth option is 3.98% gross/AER, and the Income option is 3.91% gross/3.98% AER.

The new interest rate on the 3-year Growth option is 4.02% gross/AER, and the Income option is 3.95% gross/4.02% AER.

The new interest rate on the 5-year Growth option is 4.05% gross/AER, and the Income option is 3.98% gross/4.05% AER.

British Savings Bonds (GGB and GIB)are available to customers wanting a guaranteed rate for a fixed-term of 1, 2, 3 or 5 years. Funds cannot be withdrawn early with fixed-term accounts. Savers will need a minimum investment of £500 and can invest a maximum of £1 million per person in each Issue. After the fixed-term period, savers will have the choice to withdraw their cash or reinvest into a new term.

Existing British Savings Bonds (GGB and GIB) customers who have already received their 30-day maturity letter will receive the interest rate quoted in the letter.

Notes to Editors

1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to more than 24 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.
2. 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.
3. 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.
4. 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.
5. Net Financing is the measure of the net change of NS&I funds, meaning total inflows from deposits, retention of maturing monies and capitalised accrued interest, less the total outflows from withdrawals and interest or Premium Bonds prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.
6. The Net Financing target for 2025-26 is £13 billion (+/- £4 billion).
7. Information on NS&I’s on sale products can be found here.
8. NS&I photography and logos are available to download here.