Published 25th Jul 2025, 13:16 BST
One finance expert described the move as bucking “the trend in a falling market”. British Savings Bonds are fixed-term issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds. They are available to new customers and those with existing bonds which are due to mature.
The new rate for the one-year Growth and Income options, on sale from Thursday, is 4.18% AER (annual equivalent rate). The previous rate was 4.05% AER.
Andrew Westhead, NS&I retail director, said: “I am pleased we can offer savers this new opportunity to save. In launching this new issue, NS&I continues to balance the interests of its savers, taxpayers and the broader financial services sector – and to work towards its annual net financing target.”
NS&I is backed by the Treasury, so money held with it has 100% security. Guaranteed Growth Bonds and Guaranteed Income Bonds are available to customers wanting a guaranteed rate for a fixed-term of one, two, three or five years. Funds cannot be withdrawn early with fixed-term accounts. Savers need a minimum investment of £500 and can invest a maximum of £1 million per person in each issue.