Source: MoneySavingExpert, "Government-owned NS&I's new fixed-rate savings now pay up to 5.17% interest – close to topping the tables", published 6 October 2026. Rates checked directly against NS&I's own Guaranteed Growth Bonds and interest rates pages, live as of 12 October 2026.
Our view
NS&I’s rates are now competitive with other providers, alongside its Treasury backing. This is a prompt to check what you earn on money you have already decided not to touch for a year or more.
What changed
On 6 October 2026, NS&I's current issues of Guaranteed Growth Bonds (British Savings Bonds) were paying, gross/AER: 4.99% fixed for one year (Issue 93), 5.07% fixed for two years (Issue 81), 5.10% fixed for three years (Issue 83), and 5.17% fixed for five years (Issue 75). Per MoneySavingExpert's reporting, those rates are up from 4.82%, 4.81%, 4.83% and 4.85% respectively on the equivalent terms beforehand. The equivalent Guaranteed Income Bonds pay interest monthly instead of compounding it, at marginally lower rates for the same terms.
The mechanics are unchanged: deposits start at £500 and go up to £1 million per person within each Issue, you cannot withdraw before maturity under any circumstances, and you cannot top up a Bond once bought — buying a second Bond is how you add more at the current rate. Interest on a Growth Bond compounds inside the account and is paid out, in full, when the Bond matures.
How this compares
According to MoneySavingExpert's analysis, NS&I's two-, three- and five-year fixes now pay more than other big-name providers, and the one-year fix trails the best on offer by only a fraction. The same reporting notes specialist lender DF Capital was paying 5.35% on a five-year bond at the same time, ahead of NS&I's 5.17%. NS&I's Treasury backing has no compensation-scheme cap.
Illustrative figures only, using NS&I's own confirmed old and new Guaranteed Growth Bond rates, compounding annually, to show the shape of the decision — your own deposit and timing will differ.
- £10,000 locked for 2 years at the old 4.81% rate: grows to about £10,985 — roughly £985 interest.
- The same £10,000 at the new 5.07% rate: grows to about £11,040 — roughly £1,040 interest.
- The rate rise alone adds about £55 over two years on £10,000.
- £10,000 locked for 5 years at the old 4.85% rate: grows to about £12,672 — roughly £2,672 interest.
- The same £10,000 at the new 5.17% rate: grows to about £12,866 — roughly £2,866 interest.
- Over five years, the rate rise alone adds about £194 on the same £10,000.
No access until maturity
NS&I's Guaranteed Growth and Income Bonds do not allow early withdrawal for any reason, unlike some bank fixed bonds that allow it for a penalty. Money that may be needed before the maturity date, such as an emergency fund or a house deposit, cannot be reached in a Bond.
Interest from these Bonds counts towards your Personal Savings Allowance exactly like any other savings interest — £1,000 a year tax-free for a basic-rate taxpayer, £500 for higher-rate, nothing additional-rate. The quirk is timing: a Growth Bond's entire multi-year interest total lands in the single tax year it matures, not across the years it accrued. Put £20,000 into a five-year Bond at 5.17% and roughly £5,730 of interest arrives in one tax year when it matures, above the Personal Savings Allowance for basic and higher-rate taxpayers. Spread evenly across five years, more of it might have stayed within the allowance. The details are in NS&I's new rates — the tax trap.
Three things to check this week
- Check the rate on any money you have already decided not to touch for a year or more. Compare it with what is available now.
- Work out your Personal Savings Allowance position before buying a longer Bond. If a five-year Bond's full interest landing in one tax year would push you over your allowance, read our tax-trap breakdown first.
- Money in a Bond cannot be reached before the term ends. Bonds are sold directly on NS&I's own Guaranteed Growth Bonds page. Our ISA guide explains how cash ISA interest is treated for tax.
What is still uncertain
These rates are a snapshot from 12 October 2026, not a fixed feature of the product: NS&I has changed its Guaranteed Growth and Income Bond rates more than once already this year, and it can do so again without warning on this specific Issue closing and a new one opening at a different rate. Check NS&I's interest rates page for the current number. Separately, the Bank of England's next Bank Rate decision is due on 5 November 2026; it won't change the rate on a Bond you've already bought, but it will move the comparison for anyone still deciding between locking in now and waiting to see where rates go next.
For a wider look at your money, see our guide to budgeting. If money is tight, free, independent help is available today from MoneyHelper, StepChange and National Debtline.