NS&I raises British Savings Bond rates to 5.17% in fourth boost in under four months

From the Newshound archive · first published 6 October 2026 · last updated 8 October 2026.

NS&I has lifted rates across all fixed-term British Savings Bonds, with the five-year Guaranteed Growth Bond now paying 5.17% AER following a rise of 0.32 percentage points. The two-year bond offers 5.07% and the three-year 5.10%, pushing both above the 5% threshold, while the one-year bond sits just below at 4.99%. The minimum investment is £500, interest is taxable, and the revised rates went on sale on 6 October, open to new customers and those with bonds reaching maturity.

This is the fourth rate increase in less than four months, with Sarah Coles of AJ Bell calling the hikes 'pretty substantial'.

The three-year rate now ranks among the ten most competitive fixed bonds on the market, with other terms placed in the top 20.

Experts warn savers to act before the Budget on 28 October, as Chancellor John Healey's announcement could shift the interest-rate outlook.