NS&I increases interest rate for 1-year fixed-term guaranteed growth and income Bonds

unsplash inflation

NS&I has reported today that new Issues of its 1-year fixed-term Guaranteed Growth Bonds and Guaranteed Income Bonds have gone on sale today at a higher interest rate.

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 interest rate on the 1-year Growth option is 4.18% gross/AER, and the Income option is 4.11% gross / 4.18% AER.

Andrew Westhead, NS&I Retail Director, said: “I am pleased that we can offer savers – both new, and those with our existing 1-year Bonds which are about to mature – 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.”

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 Funds cannot be withdrawn early with fixed-term accounts.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.

ProductPrevious interest rate (from 15 April 2025)New interest rate from 24 July 2025 (on general sale)
Guaranteed Growth Bonds 1-year (Issue 85)4.05% gross/AER4.18% gross/AER
Guaranteed Income Bonds 1-year (Issue 85)3.98% gross/4.05% AER4.11% gross/4.18% AER

Related Articles

Sign up to the IFA Newsletter

Name

Trending Articles


IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast – listen to the latest episode

IFA Magazine
Privacy Overview

Our website uses cookies to enhance your experience and to help us understand how you interact with our site. Read our full Cookie Policy for more information.