New Issues of NS&I’s fixed-term Bonds at lower interest rates

New Issues of NS&I’s 1, 2, 3 and 5-year fixed-term British Savings Bonds (Guaranteed Growth (GGB), and Guaranteed Income Bonds (GIB)) have gone on sale today at lower interest rates.

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. 

Today’s changes reflect changes in the wider market and will help NS&I to meet its Net Financing target while continuing to balance the interests of savers, taxpayers and the broader financial services sector. 

The new interest rate on the 1-year Growth option is 4.07% gross/AER, and the Income option is 4.00% gross/4.07% AER.

The new interest rate on the 2-year Growth option is 3.98% gross/AER, and the Income option is 3.91% gross/3.98% AER.

The new interest rate on the 3-year Growth option is 4.02% gross/AER, and the Income option is 3.95% gross/4.02% AER.

The new interest rate on the 5-year Growth option is 4.05% gross/AER, and the Income option is 3.98% gross/4.05% AER.

British Savings Bonds (GGB and GIB) are available to customers wanting a guaranteed rate for a fixed-term of 1, 2, 3 or 5 years. Funds cannot be withdrawn early with fixed-term accounts. Savers will need a minimum investment of £500 and can invest a maximum of £1 million per person in each Issue. After the fixed-term period, savers will have the choice to withdraw their cash or reinvest into a new term.

Existing British Savings Bonds (GGB and GIB) customers who have already received their 30-day maturity letter will receive the interest rate quoted in the letter.