NS&I is releasing new Issues of its one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds available to new and existing customers from today.
NOTE: UPDATE – WITH EFFECT FROM 6 OCTOBER 2023, THESE ONE YEAR GUARANTEED GROWTH AND GUARANTEED INCOME BONDS WERE WITHDRAWN FROM GENERAL SALE BY NS&I.
The new Issues offer savers 6.20% gross/AER for one-year fixed rate Guaranteed Growth Bonds and 6.03% gross/6.20% AER for Guaranteed Income Bonds.
These rates for Guaranteed Growth Bonds and Guaranteed Income Bonds are the highest offered across NS&I’s product range as of today. Interest rates are also being increased for existing customers with two, three and five-year Bonds when their current holding reaches maturity.
Earlier this month, NS&I revealed that the Premium Bonds prize fund rate was to increase from 4% to 4.65% from its September draw – reaching the highest level since March 1999 and adding £66 million to the prize fund. It also announced increases to all its variable rate products.
Commenting on today’s announcement, Economic Secretary to the Treasury Andrew Griffith, said:
“It’s vital that savers are able to benefit from recent interest rate rises, so I’m delighted that NS&I is releasing new Issues of Guaranteed Growth Bonds and Guaranteed Investment Bonds at over 6% – the highest rate since they were launched.
“For further peace of mind, the Treasury provides a 100% guarantee on these savings”.
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.”
Guaranteed Growth Bonds and Guaranteed Income Bonds one-year fixed rate Issues are open to savers wishing to fix for one year at a guaranteed rate. Savers will need a minimum investment of £500 and a maximum of £1 million in each Issue. After one year, savers will have the choice to withdraw their cash or reinvest.
The two, three and five-year products are only available to existing customers with maturing products and are not open to new customers.
NS&I has continued to respond to the current dynamic savings market to ensure that its products are priced appropriately and continue to balance the interests of savers, taxpayers and the broader financial services sector.
Fixed-term savings products (on sale from 30 August 2023)
| Product | Previous interest rate (from 13 July 2023) | New interest rate from 30 August 2023 (change in brackets) |
| Guaranteed Growth Bonds (1-year) | 5.00% gross/AER | 6.20% gross/AER (+1.20 percentage points) |
| Guaranteed Income Bonds (1-year) | 5.00% gross/5.12% AER | 6.03% gross/6.20% AER (+1.03 percentage points) |
Fixed-term savings products (not on sale but available to customers with maturing products)
| Product | Previous interest rate | New interest rate from 30 August 2023 (change in brackets) |
| Guaranteed Growth Bonds (2-year) | 5.10% gross/AER (from 13 July 2023) | 5.80% gross/AER (+0.70 percentage points) |
| Guaranteed Growth Bonds (3-year) | 5.10% gross/AER (from 13 July 2023) | 5.80% gross/AER (+0.70 percentage points) |
| Guaranteed Growth Bonds (5-year) | 4.25% gross/AER (from 1 February 2023) | 5.50% gross/AER (+1.25 percentage points) |
| Guaranteed Income Bonds (2-year) | 5.10% gross/5.22% AER (from 13 July 2023) | 5.65% gross/5.80% AER (+0.55 percentage points) |
| Guaranteed Income Bonds (3-year) | 5.10% gross/5.22% AER (from 13 July 2023) | 5.65% gross/5.80% AER (+0.55 percentage points) |
| Guaranteed Income Bonds (5-year) | 4.15% gross/4.23% AER (from 1 February 2023) | 5.37% gross/5.50% AER (+1.22 percentage points) |
