NS&I (National Savings and Investments) will cut the rates on some of its most popular savings accounts from 12th February 2026. This will be the first time NS&I has changed the rate on these accounts since March 2025.
The 'Direct Saver' and 'Income Bonds' accounts will both drop to paying 3.05% AER interest, down from 3.3% AER and 3.26% AER respectively.
Andrew Westhead, NS&I retail director, said: "We keep all our savings rates under review as market conditions change.
Today’s changes will help us meet our net financing target whilst continuing to balance the interests of our savers, taxpayers and the wider financial services sector."
Which NS&I accounts are affected?
NS&I announced this week that two of its most popular accounts, the 'Direct Saver' and 'Income Bonds', will offer a reduced interest rate of 3.05% AER from 12th February 2026.
Currently, the Direct Saver pays 3.3% AER and Income Bonds 3.26% AER. Both options are offered as variable-rate accounts, which means the rate of interest paid out can go up or down at any time, usually to reflect the wider savings market. This means there is a chance that the rate will drop further, or go back up, depending on the wider financial landscape.
The accounts are both easy access, so customers will be able to withdraw their savings penalty-free if they are unhappy with the rate drop.
Is NS&I still a good home for your savings?
NS&I is backed by the Treasury and is able to guarantee customer savings above the £120,000 Financial Services Compensation Scheme (FSCS) limit applicable to UK-authorised banks, building societies and credit unions. This makes it a secure option if you have a large amount of money that you want to keep in a savings account.
However, NS&I rarely offers the best rates on the market and recently announced that it would also cut the rates on its range of fixed-rate bonds. This succession of NS&I rate cuts follows the Bank of England decision in December 2025 to cut the base rate to 3.75%. It should come as no surprise that other savings providers have also been reducing interest rates.
Whether or not NS&I is still a good home for your savings will depend on the extent to which you prioritise your rate of return over its unique level of security, though this will only be relevant to savers who exceed the FSCS limit.
Does NS&I offer the best savings rates?
No, not usually. As NS&I is backed by the Treasury, it has a responsibility to deliver value-for-money to taxpayers through a financing target that it must hit. This means that, unlike other savings providers, it cannot always boost rates at a loss in order to expand its customer base. As a result, it is always unlikely that NS&I will offer the highest savings rates on the market.
If you are keen to maximise the amount of money you are earning from your savings, there are better options out there. We regularly update our savings tables and cover a wide range of different savings products. You can find the best options on our 'Best savings accounts in the UK' page.
Even before NS&I slashes the interest rates on its popular easy-access accounts, the table below demonstrates that the existing NS&I interest rates of 3.3% AER and 3.26% AER do not even compete with the best options on the market. In fact, as many as ten easy-access accounts currently pay 4% AER interest or above.
| Chase | Mansfield Building Society | The West Brom | Manchester Building Society | Shawbrook Bank | |
| Account name | Chase saver with a boosted rate | Triple Access Bonus Saver - 1st Issue | Four Access Saver Issue 5 | Manchester Rainy Day Saver | Easy Access Savings Account |
| AER | 4.50%^ | 4.25%^ | 4.15% | 4.15% | 4.13% |
| Gross Interest Rate | 4.41% | 4.16% | 4.15% | 4.15% | 4.05% |
| Minimum opening balance | £0 | £1 | £1 | £1 | £1 |
| How to manage the account | Mobile Banking | Branch, Post | Online | Online, Branch, Post, Telephone | Online, Telephone |
| How to apply | Mobile | Branch, Post | Online | Online, Branch | Online |
| Financial Services Compensation Scheme | Shared Licence | Own Licence | Own Licence | Shared Licence | Own Licence |
Source: theprivateoffice.com: Updated 23/01/2026 ^rate includes a boosted rate for a limited period of time
You can learn more by going to our 'Best Easy Access Savings Accounts in the UK' page.
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