National Savings and Investments (NS&I) has increased interest rates across its one, two, three, and five-year fixed British Savings Bonds, effective July 31, 2026.
The top rate now stands at 4.75 percent for five-year terms.
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The state-backed institution introduced new issues of its Guaranteed Growth Bonds and Guaranteed Income Bonds to support its Net Financing target while keeping pace with rising returns in the savings market.
Revised Rates and Product Details
Under the revised rates, the one-year Guaranteed Growth Bond rose to 4.72 percent gross/AER, while the equivalent Guaranteed Income Bond increased to 4.63 percent gross and 4.72 percent AER.
Two-year growth options climbed to 4.70 percent AER, and three-year growth products shifted to 4.68 percent AER.
The largest rate hike was applied to the five-year growth bond, which saw a 0.20 percentage point increase to reach 4.75 percent gross/AER.
The corresponding five-year income bond now offers 4.65 percent gross and 4.75 percent AER.
These adjustments follow the Bank of England Monetary Policy Committee's decision to maintain the base rate at 3.75 percent.
To open a British Savings Bond, customers require a minimum deposit of £500, with a maximum holding limit of £1 million per person per issue.
Early withdrawals are strictly prohibited.
Andrew Westhead, Retail Director at NS&I, said: "Today's increases mean savers can now choose from improved fixed-term rates across our one, two, three and five-year British Savings Bonds, with the certainty of knowing exactly what return they will receive over their chosen term."
