NS&I launches new Issues of British Savings Bonds with higher interest rates

NS&I put new Issues of its fixed-term British Savings Bonds on general sale on 6 October 2026, with higher interest rates across 1, 2, 3 and 5-year terms¹. The new Issues are available to both new and maturing customers¹. The products are Guaranteed Growth Bonds, which pay interest at maturity, and Guaranteed Income Bonds, which pay interest monthly¹.

The 1-year Growth option pays 4.99% gross/AER, up from 4.82%, and the Income option pays 4.88% gross/4.99% AER, up from 4.72% gross/4.82% AER¹. The 2-year Growth option pays 5.07% gross/AER, up from 4.81%, and the Income option 4.96% gross/5.07% AER, up from 4.71% gross/4.81% AER¹. The 3-year Growth option pays 5.10% gross/AER, up from 4.83%, and the Income option 4.99% gross/5.10% AER, up from 4.73% gross/4.83% AER¹. The 5-year Growth option pays 5.17% gross/AER, up from 4.85%, and the Income option 5.06% gross/5.17% AER, up from 4.75% gross/4.85% AER¹.

Source: NS&I¹

NS&I said the increases reflect changes in the wider savings market and will help it meet its Net Financing target while balancing the interests of savers, taxpayers and the broader financial services sector¹. The Net Financing target for 2026-27 is £15 billion, plus or minus £4 billion¹. This is Money reported that NS&I "struggles to hit a chunky net financing target of £15billion"².

Savers need a minimum investment of £500 and can invest a maximum of £1 million per person in each Issue¹. Funds cannot be withdrawn early from these fixed-term accounts¹. After the fixed term, savers can withdraw their cash or reinvest into a new term¹. NS&I says all money invested with it is 100% secure and backed by HM Treasury¹; This is Money reports the same Treasury backing².

This is Money reported that the new Issues mark the first time these accounts have paid more than 5 per cent since January 2024². It also reported that the 1-year fix paid 4.04 per cent a year ago, the 2-year fix paid 4.25 per cent two years ago, and that NS&I paid 5.8 per cent on a 3-year fix in October 2023 and 1.65 per cent on a 5-year fix in October 2021². Those historical comparisons appear only in that report.

Why it matters for households

The rates apply to the new Issues on sale from 6 October 2026, so they affect savers opening these bonds from that date and those whose existing bonds mature and are reinvested into a new Issue¹. Interest on Guaranteed Growth Bonds is calculated daily, added on each anniversary date and paid when the bond matures; the interest counts towards taxable income in the tax year the bond matures if the individual's threshold has been met¹. Guaranteed Income Bonds pay interest monthly into a nominated bank account¹. Unlike Premium Bonds prizes and Isas, these bonds are not exempt from tax, and This is Money noted that interest paid at maturity can use up the Personal Savings Allowance². Money held in the bonds cannot be accessed before the term ends¹.

What happens next

NS&I has not reported an end date for the new Issues. The previous rates applied from 18 August 2026¹. NS&I's Net Financing target for 2026-27 is £15 billion, plus or minus £4 billion¹.