New Issues of NS&I 2, 3 and 5-year British Savings Bonds, plus new Junior ISA interest rate

NS&I has reported that new issues of 2, 3 and 5-year British Savings Bonds (Guaranteed Growth Bonds and Guaranteed Income Bonds) have gone on sale today for new and maturing customers. A new Junior ISA interest rate also applies from 18 July.

British Savings Bonds are fixed-term Issues of NS&I’s Guaranteed Growth Bonds and Guaranteed Income Bonds.

The new interest rate on the 2-year Growth option is 3.85% gross/AER, and the Income option is 3.79% gross / 3.85% AER.

The new interest rate on the 3-year Growth option is 3.88% gross/AER, and the Income option is 3.82% gross / 3.88% AER.

The new interest rate on the 5-year Growth option is 3.84% gross/AER, and the Income option is 3.78% gross / 3.84% AER.

There is no change to 1-year British Savings Bonds. The 1-year Growth option remains at 4.05% gross/AER, and the Income option is 3.98% gross / 4.05% AER.

Alongside this, NS&I’s Junior ISA will now offer 3.55% AER (tax-free) to savers under the age of 18. This is the first interest rate change since 18 August 2023, when it was 4.00% AER (tax-free).

Andrew Westhead, NS&I Retail Director, said: “Today’s announcement is in response to changes in the wider market and will ensure we continue to offer a range of fixed-term options while balancing the interests of savers, taxpayers and the broader financial services sector. 

“This is the first change to our Junior ISA interest rate in nearly two years, reflecting our ongoing commitment to helping young people save for their future.”

Guaranteed Growth Bonds and Guaranteed Income Bonds 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 Funds cannot be withdrawn early with fixed-term accounts.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.