NS&I has announced that from 30th August 2023, it is increasing the rate of its 1-year Guaranteed Growth and Income Bonds to over 6.00%. The latest increase means that it is the highest rate on offer for both accounts since 2008. The fixed-rate accounts offer a set interest rate for 1 year, guaranteeing the rate that account holders receive on their savings until maturity in 12 months' time. Additionally, those who already hold an NS&I 2, 3 and 5-year fixed bond account will benefit from increased interest rates once their existing bond matures.
NS&I Chief Executive, Dax Harkins, said: “It was great to be able to bring back on sale our one-year fixed-rate Guaranteed Growth Bonds and Guaranteed Income Bonds in February last year. Today, we are able to offer new Issues with an improved interest rate for customers wanting the certainty of knowing how much they will be earning on their savings for one year".
“At the same time, existing customers with maturing Bonds can choose to invest at new higher rates for two, three and five-year Guaranteed Growth Bonds and Guaranteed Income Bonds.”
The latest interest rate increase from NS&I comes a week after it announced an increase to its Green Savings Bond rate and a few weeks after it increased the premium bonds' notional interest rate. In this article, we look at the rates you can get on your savings, how your money is protected and how the NS&I bonds compare to alternative savings accounts.
What rate can I get on my savings?
In the following tables, we share the rates that new and existing customers can expect on their NS&I fixed-rate bond accounts. The 1-year fixed-rate bond accounts are on sale from 30th August 2023. The 2, 3 and 5-year fixed-rate bonds are not currently on sale and will be the rates that existing customers can expect once the account matures if they choose to reinvest.
If you wish to open a new 1-year fixed-rate bond account with NS&I you can do so on the NS&I website. You will need a minimum of £500 to invest into the account and you can save up to £1million.
NS&I 1-year fixed-rate bond rates - new customers
| Product | Previous interest rate (From 13th July 2023) | Interest rate (from 30th August 2023) |
| 1-year fixed-rate Guaranteed Growth Bonds | 5.00% gross/AER | 6.20% gross/AER |
| 1-year fixed-rate Guaranteed Income Bonds | 5.00% gross/5.12% AER | 6.03% gross/6.20% AER |
NS&I 2, 3 and 5-year fixed bond rates - existing customers
Guaranteed Growth Bond rates - existing customers
| Product | Previous interest rate (From 13th July 2023) | Interest rate (from August 2023)* |
| 2-year fixed-rate Guaranteed Growth Bonds | 5.10% gross/AER | 5.80% gross/AER |
| 3-year fixed-rate Guaranteed Growth Bonds | 5.10% gross/AER | 5.80% gross/AER |
| 5-year fixed-rate Guaranteed Growth Bonds | 4.25% gross/AER | 5.50% gross/AER |
*available once the account matures and if you choose to reinvest
Guaranteed Income Bond rates - existing customers
| Product | Previous interest rate (From 13th July 2023) | Interest rate (from August 2023)* |
| 2-year fixed-rate Guaranteed Income Bonds | 5.10% gross/5.22% AER | 5.65% gross/5.80% AER |
| 3-year fixed-rate Guaranteed Income Bonds | 5.10% gross/5.22% AER | 5.65% gross/5.80% AER |
| 5-year fixed-rate Guaranteed Income Bonds | 4.15% gross/4.23% AER | 5.37% gross/5.50% AER |
*available once the account matures and if you choose to reinvest
The rates on the 2, 3 and 5 year fixed-rate accounts are only available to existing customers while the 1 year rates are available to both new and existing customers.
Is my money protected with NS&I?
UK registered banks usually provide protection in the form of the Financial Services Compensation Scheme (FSCS) meaning money up to the value of £85,000 is safeguarded if the bank or building society goes bust. If you have an NS&I savings account, your money is 100% secure, which means up to £1million is protected if you put the maximum into the 1-year fixed-rate Growth Bond or Income Bond. This is because NS&I is a financial institution that describes itself as a 'government savings bank', meaning it has the backing of HM Treasury.
NS&I savings accounts may be a good option for you if you have large amounts of money to save as all of your savings are protected by the NS&I 100% guarantee.
Alternative savings accounts
If you are looking for additional ways to save and maximise the amount of interest that you can achieve on your savings then you should bookmark our article, 'Best savings accounts in the UK' for the most up-to-date rates on your savings. Our best buy tables also highlight the best rates you can get on fixed-rate bond savings accounts and fixed - ISAs.
