National Savings and Investments Boosts Fixed Savings Account Rates

National Savings and Investments (NS&I) has increased the interest rates on its fixed savings accounts, with the highest rate now reaching 4.75% on its five-year Guaranteed Growth Bonds and Guaranteed Income Bonds.

These boosted rates are effective from July 31, 2026, and apply to one, two, three, and five-year terms. Savers can choose to receive interest monthly or at the end of the fixed term. NS&I requires a minimum deposit of £500, with a maximum balance of £1 million. Funds are inaccessible for the duration of the fixed term.

The new rates represent a small increase across NS&I's fixed-term offerings. The five-year accounts saw the most significant hike, with the Guaranteed Growth Bond rate rising by 0.2% to 4.75% gross/AER. The Guaranteed Income Bonds also increased, with the five-year term reaching 4.75% gross/AER for monthly interest.

Comparison with Market Rates

While NS&I's updated rates make its accounts more competitive, other providers are offering higher returns. For example, Atom Bank and Investec are offering 5% on their five-year and three-year fixed savings accounts, respectively. These 5% rates are the highest seen in fixed savings accounts since 2024.

Other providers are also offering competitive rates for shorter terms. GB Bank offers 4.92% on a one-year fix with a £1,000 minimum deposit, while Oaknorth provides 4.86% on a one-year fix with a minimum deposit of just £1.

For those considering tax-free Individual Savings Accounts (ISAs), RCI Bank offers a two-year fix at 4.80%, and Tandem Bank provides a five-year fix at 4.81%. The investment platform Trading 212 is offering an easy-access ISA rate of 4.51%, which includes a 12-month fixed boost of 0.91%.

Security and Taxation

NS&I products benefit from an unlimited guarantee from HM Treasury, offering a higher level of security compared to the £120,000 Financial Services Compensation Scheme (FSCS) protection offered by most banks and building societies. However, interest earned above a saver's personal savings allowance is taxable, as these accounts are not tax-free ISAs.

Rates for NS&I accounts as of July 31, 2026:

• Guaranteed Growth Bonds (Issue 91) 1-year: 4.72% gross/AER (previously 4.69%)
• Guaranteed Income Bonds (Issue 91) 1-year: 4.63% gross/4.72% AER (previously 4.60%/4.69%)
• Guaranteed Growth Bonds (Issue 79) 2-year: 4.70% gross/AER (previously 4.67%)
• Guaranteed Income Bonds (Issue 79) 2-year: 4.61% gross/4.70% AER (previously 4.58%/4.67%)
• Guaranteed Growth Bonds (Issue 81) 3-year: 4.68% gross/AER (previously 4.65%)
• Guaranteed Income Bonds (Issue 81) 3-year: 4.59% gross/4.68% AER (previously 4.56%/4.65%)
• Guaranteed Growth Bonds (Issue 73) 5-year: 4.75% gross/AER (previously 4.55%)
• Guaranteed Income Bonds (Issue 73) 5-year: 4.65% gross/4.75% AER (previously 4.46%/4.55%)