NS&I recently launched new fixed-rate deals offering interest rates between 4.99% and 5.17%, depending on the term length chosen. The company now offers one-year, two-year, three-year, and five-year Guaranteed Growth Bonds with increasing interest rates, ranging from 4.99% to 5.17%. Additionally, NS&I provides monthly payout options through its Guaranteed Income Bonds at slightly lower but competitive rates. This move comes as the government pressures NS&I to raise £15 billion by March next year, and it aims to attract savers with these high-interest deals amid increasing competition from other banks.
Written locally by qwen2.5:14b on 2026-10-07,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
National Savings & Investments (NS&I) launched new savings deals offering rates between 4.99% and 5.17%, depending on the length of time investors are willing to lock in their funds. This move comes as part of NS&I's efforts to attract savers, under pressure from the UK government to raise a total of £15 billion by the end of March 2024, with a leeway of up to £4 billion. Despite being behind its target, NS&I has seen its rates rise for the fifth time this year, positioning it among the top savings providers in the market. The new bonds include options such as Guaranteed Growth Bonds and Guaranteed Income Bonds, where interest can be paid at maturity or monthly, respectively. This push from NS&I is part of a broader trend where financial institutions are competing to offer increasingly attractive fixed-rate deals to savers.
Written for “UK Savings Rates Increase” on 2026-10-07,
grounded in this article and the 0 other(s) covering the same event.
National Savings & Investments (NS&I) yesterday launched some of the best fixed-rate deals it has offered for years.
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You can now get between 4.99 per cent and 5.17 per cent on its Guaranteed Growth Bonds depending on how long you are able to tie up your money.
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It marks the fifth rise this year and puts NS&I close to the top of the best buy charts.
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NS&I has truly thrown down the gauntlet to other savings providers, which are now leapfrogging each other to offer the best fixed-rate deals.
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NS&I savers can choose between Guaranteed Growth Bonds, which pay interest at the end of the term, or Guaranteed Income Bonds, which pay monthly.
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Its one-year Guaranteed Growth Bond is 4.99 per cent – the best rate open to all savers since it paid 6.2 per cent for a short time in August 2023.
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That’s £499 interest on each £10,000 you put in.
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If you prefer interest monthly, the one-year Guaranteed Income Bond pays 4.88 per cent – just over £40 a month.
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You can now get between 4.99% and 5.17% on NS&I's Guaranteed Growth Bonds depending on how long you are willing to tie up your money
NS&I is under pressure to woo savers as the Government has tasked it with raising £15billion (with a £4billion leeway) by the end of next March, and it is way behind its target.
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You can get a rate slightly higher from its top-paying competitors – up to 5.12 per cent against 4.99 per cent – but that extra 0.13 percentage points is equivalent to just £13 a year per £10,000.
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For some, that is a price worth paying to enjoy the safety offered by NS&I, which guarantees all your money.
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Other banks offer security only up to £120,000 under the Financial Services Compensation Scheme.
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NS&I’s competitors will no doubt now up their rates – some have already told me they intend to do so.
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That could lead to yet another increase from NS&I, which is desperate to keep up with the competition.
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But you could lose out on valuable interest while you are waiting for better rates.
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If you leave your money in an easy-access account in the meantime, you could end up with less interest than if you lock in a deal now.
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NS&I’s two-year Guaranteed Growth Bond now pays 5.07 per cent while for three years the rate is 5.1 per cent and 5.17 per cent for five years.
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If you go for a longer-term Guaranteed Growth Bond, watch out for your tax bill.
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They pay out at the end of the term, meaning all the interest counts towards your personal savings allowance (£1,000 a year for basic-rate payers and £500 for higher-rate payers) in the year it comes to an end.
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There is no such problem with the Guaranteed Income Bonds because they pay out interest each month.
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If you want to make the most of your savings, checking the top rates and moving to a better deal is essential, as is using a cash Isa to beat savings tax.
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This is Money's best buy savings tables are independently curated by savings expert Sylvia Morris and the This is Money team.
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We update them daily and feature the top accounts with FSCS protection.
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Savings essentials:
> Compare best savings rates in our tables
SAVE MONEY, MAKE MONEY
Affiliate links: If you take out a product This is Money may earn a commission.
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These deals are chosen by our editorial team, as we think they are worth highlighting.
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This does not affect our editorial independence.
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Terms and conditions apply on all offers.
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