NS&I Raises Fixed Savings Rates Above 5% as Competition Stays Firm
NS&I has raised returns on some savings accounts above 5% for the first time in nearly three years. The Guardian
The change, published on 10 October 2026, centres on its British savings bonds. The one-year British savings growth bond now pays 4.99%, up from 4.82%. The two-year version pays 5.07%, up from 4.81%. The three-year bond pays 5.1%, up from 4.83%. The five-year bond pays 5.17%, up from 4.85%.
Those bonds are new names for its guaranteed growth bonds and guaranteed income bonds. Savers can invest from £500 up to £1m per person per bond issue. A fixed-rate bond locks the money away — you cannot withdraw it before the term ends.
NS&I sits near the top of the fixed-rate tables but does not lead them. The highest-paying five-year fixed-rate bond pays 5.37% from GB Bank. The top one-year fixed-rate bond pays 5.12% from Union Bank of India (UK).
Other providers have shifted rates. Marcus by Goldman Sachs lifted its one-year fixed-rate account from 4.3% to 4.75%. Starling offers an Easy Saver at 5%, made up of a 2.5% variable standard rate plus a 2.5% fixed bonus for six months. That offer is for customers opening a Starling current account on or after 1 October, on balances up to £25,000.
The repricing came after the Bank of England kept UK interest rates unchanged at 3.75%, according to reporting published on 17 September 2026. BBC Competition for easy-access savings has stayed firm. Instant- and easy-access accounts, which let you withdraw at any time, pay up to 5%. Fixed-rate bonds pay almost as much, while banks have advertised savings deals paying up to 8%.
NS&I's other mass-market product works on a different principle. Premium Bonds offer the chance to win tax-free prizes each month while you save. Each £1 Premium Bond number is entered into a prize draw every month. Monthly prizes range from £25 to £1 million. The Telegraph
The current rise follows a period of cuts. In September 2024, TSB, NS&I and others cut savings rates in a week when the Bank of England kept rates steady. Two months earlier, experts were split on whether the UK would cut rates that Thursday, though most agreed savers should “act now” to lock in top-paying accounts. At the end of 2023, the Bank had been forecast to make as many as four rate cuts in 2024, a prospect expected to lower savings returns.
Rachel Springall of Moneyfactscompare cautioned that attractive savings deals do not stay available for long, noting providers will pull a product after attracting enough savings inflows.
The broader context here is a deposit market where state-backed NS&I and commercial banks are bidding for the same fixed-term cash. The headline rate is only part of the choice. NS&I allows large balances up to £1m per issue with a sovereign guarantee, but the money is fully locked in. Smaller banks pay slightly more at one and five years. Bonus-led easy-access accounts keep flexibility, but the rate can fall once the bonus ends.
