NS&I British Savings Bonds: new fixed rates from 6 October 2026
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
NS&I raised the rates on its new one-, two-, three- and five-year British Savings Bonds on 6 October 2026. The highest advertised AER is now 5.17% on the five-year Guaranteed Growth Bond. These are fixed-term products: the rate is guaranteed for the chosen term, but access to your money is restricted.
Who this guide is for
This guide is for UK savers considering a fixed-term NS&I British Savings Bond or whose existing NS&I bond is approaching maturity. The rates below are the new Issues shown on NS&I’s official interest-rate page when checked on 9 October 2026. Rates and availability can change, so check the live product page before applying.
What changed
NS&I’s new Issues replaced the previous Issues that went on sale on 18 August 2026. The one-year Guaranteed Growth Bond rose from 4.82% to 4.99% gross/AER; the two-year from 4.81% to 5.07%; the three-year from 4.83% to 5.10%; and the five-year from 4.85% to 5.17%. These are the rates on the new Issues, not a change to the fixed rate already held in an existing bond.
Growth or Income: what is the difference?
Guaranteed Growth Bonds add interest to the bond annually and pay it when the bond matures. Guaranteed Income Bonds pay interest monthly into your nominated bank account. The headline rates differ: for example, the five-year Growth Bond pays 5.17% gross/AER, while the five-year Income Bond pays 5.06% gross and 5.17% AER. AER means Annual Equivalent Rate, which helps compare products on a like-for-like basis.
How long is your money tied up?
NS&I says these fixed-term bonds do not allow early withdrawals. The minimum investment is £500 and the maximum is £1 million per person in each Issue. At maturity, you can choose to withdraw the money or reinvest it into a new term. NS&I says the new Issues are available to both new customers and customers whose bonds are maturing.
Is the interest tax-free?
No. NS&I lists the interest as taxable and paid gross. That means tax is not deducted before payment. Interest from a Growth Bond counts towards taxable income in the tax year the bond matures; Income Bond interest is paid monthly. Whether tax is due depends on your wider taxable income and available Personal Savings Allowance. Do not assume the quoted rate is tax-free.
What the rate does—and does not—tell you
The rate is fixed for the term once you have opened the bond, so it offers certainty about the stated interest rate. It does not mean the product will suit every saver. Locking money away can be costly if you later need access, and inflation can reduce what the money buys. Compare the term, access rules, tax treatment and rates available elsewhere before deciding; this guide does not rank products or recommend one for your circumstances.
Check before you act
Confirm the Issue number and current rate on NS&I’s live interest-rate page before applying, because products can be withdrawn or replaced. Make sure you can leave the money untouched for the full term. Check whether monthly income or interest at maturity fits your needs, and consider how taxable interest could affect your Personal Savings Allowance. If your existing bond is maturing, check the maturity options and deadline in your own account rather than assuming the new rate will apply automatically.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
