The interest rates paid on fixed-term Guaranteed Growth Bonds and Guaranteed Income Bonds are increasing from today.
The popular one-year Guaranteed Growth Bonds and Guaranteed Income Bonds are increasing to 5.00% for new customers, up from the existing 4.00% and 3.90% respectively.
The rate that NS&I offers on its two-year and three-year Guaranteed Growth Bonds and Guaranteed Income Bonds (which are not currently on general sale, but are available to existing customers who reach the end of their fixed-term) will also be increasing from today to 5.10%.
The changes to NS&I’s fixed-term products come two weeks after it announced interest rate increases on a number of its variable products, which are also effective from today. NS&I customers holding Direct Saver and Income Bonds will see the return on their savings boosted to 3.40% from 2.85% from today.
Also announced on 30 June, from August, the Premium Bonds prize fund rate will increase to 4.00% from 3.70%, with the odds improving to 22,000 to 1 from 24,000 to 1, their best level in 15 years.
NS&I Chief Executive, Dax Harkins, said:
“Guaranteed Growth Bonds and Guaranteed Income Bonds are popular with our customers and I’m pleased that we’re able to announce these changes today for new and existing customers to take advantage of.
“Customers holding Direct Saver and Income Bonds will also see a boost from today, with their interest rates going up, and millions of Premium Bonds holders will also have a better chance of winning a prize from the next draw.”
Customers who already have one-year Guaranteed Growth Bonds and Guaranteed Income Bonds will continue on their original fixed rate, but at the end of the term, they can roll over into a new term at the rate on offer at that time.
The changes announced today ensure that NS&I’s products remain attractive to customers and that it continues to balance the interests of savers, taxpayers and the broader financial services sector.
Changes to on-sale products
| Product | Previous interest rate | New interest rate (effective from today) |
| Guaranteed Growth Bonds (1-year) | 4.00% gross/AER | 5.00% gross/AER |
| Guaranteed Income Bonds (1-year) | 3.90% gross/3.97% AER | 5.00% gross/5.12% AER |
Changes to off-sale products
| Product | Previous interest rate | New interest rate (effective from today) |
| Guaranteed Growth Bonds (2-year) | 4.20% gross/AER | 5.10% gross/AER |
| Guaranteed Growth Bonds (3-year) | 4.20% gross/AER | 5.10% gross/AER |
| Guaranteed Income Bonds (2-year) | 4.10% gross/4.18% AER | 5.10% gross/5.22% AER |
| Guaranteed Income Bonds (3-year) | 4.10% gross/4.18% AER | 5.10% gross/5.22% AER |
