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NS&I Lifts British Savings Bond Rates, Bucking Market Trend

The move is seen as a bid to draw funds toward the government’s financing needs.

Overview

  • New fixed rates are 4.20% AER for one year, 4.10% for two years, 4.16% for three years and 4.15% for five years, with increases of up to 0.31 percentage points.
  • The higher rates apply to both new purchasers and savers rolling over maturing NS&I bonds.
  • Investments from £500 to £1,000,000 are accepted, and funds cannot be withdrawn before the end of the chosen term.
  • NS&I’s deposits carry a 100% Treasury guarantee, though experts note higher-paying alternatives from rivals such as LHV Bank, JN Bank and Chetwood Bank.
  • The announcement follows the Bank of England’s decision to hold base rate at 4%, as many providers cut savings rates on expectations of future reductions.