NS&I British Savings Bonds rates slide

July 3, 2025 Shehroz Malik No Comment 6 Views

atOptions = { 'key' : '935d6ab39f70f5664bb173656c8b20f0', 'format' : 'iframe', 'height' : 250, 'width' : 300, 'params' : {} };

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it’s investigating the financials of Elon Musk’s pro-Trump PAC or producing our latest documentary, ‘The A Word’, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Savings giant NS&I has launched some new versions of its British Savings Bonds with lower rates than those previously offered.

The provider said the announcement is in response to changes in the wider market.

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

Guaranteed Growth Bonds are a lump sum investment that earns a fixed rate of interest over a set period of time.

Interest is added to the bond on each anniversary of the investment.

Guaranteed Income Bonds are also a lump sum investment and they pay out a monthly income at a fixed rate of interest over a set period of time.

NS&I’s new two-year Guaranteed Growth Bonds and Guaranteed Income Bonds have a rate of 3.85% AER (annual equivalent rate). The previous rate was 4.00%.

Its new three-year Guaranteed Growth Bonds and Guaranteed Income Bonds will pay 3.88% AER. The previous rate was 4.10%.

The new five-year Guaranteed Growth Bonds and Guaranteed Income Bonds will pay 3.84% AER. The previous rate offered was 4.06%.

The new versions went on sale from Thursday.

There is no change to one-year British Savings Bonds.

The one-year Growth and Income options remain at 4.05% AER.

NS&I is also lowering the rate on a Junior Isa from July 18, from 4.00% to 3.55%.

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.”

Further Bank of England base rate cuts are expected in the months ahead, which could be a further blow for savers’ rates.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “These new rates show tougher times ahead for savers with interest rates starting to slide on these new savings bonds.”

She added: “However, there remains strong appeal to these products, and they will remain popular with savers with large amounts of savings.”

NS&I is backed by the Treasury, so money held with it has 100% security.

Source link