NS&I launches new issues of fixed-rate Income Bonds and British Savings Bonds – are they still worth opening?
National Savings and Investments has today revealed the rates on offer for new versions of its popular British Savings Bonds and Income Bonds.
The Treasury-backed bank has cut rates on all versions of the account, which offer one, two, three and five-year terms.
On Income Bonds, which offer a monthly interest payment on a maximum holding of £1million, the one-year fix has dropped from 4.13 per cent to 4 per cent.
The British Savings Bond (also known as the Guaranteed Growth Bond) has fallen from 4.2 per cent to 4.07 per cent.
This offers a slightly better rate than Income Bonds as you only receive interest once the fixed period is up.
Reduced: The rates on offer on NS&I’s fixed savings account have been chopped
In the independent This is Money best buy savings tables you can get a top 4.45 per cent with Union Bank of India.
Several accounts pay more than 4.2 per cent, including Chetwood Bank and Access Bank. All offer Financial Services Compensation Scheme protection of £120,000.
On two-year fixes, the Income Bonds now offer 3.91 per cent, down from 4.03 per cent and British Savings Bonds 3.98 per cent, down from 4.1 per cent.
In our tables, you can get a best buy 4.2 per cent from Access Bank. Several other deals offer more than 4.15 per cent.
On five-year fixes, the Income Bond is down to 3.98 per cent from 4.08 per cent, and British Savings Bonds from 4.15 per cent to 4.05 per cent.
These rates pay more than the two-year equivalents and have had smaller cuts than the rest.
Five-year fixes are quite sparse, with only two featuring in our independent best buy tables currently – 4.31 per cent from Hampshire Trust Bank and 4.3 per cent from Chetwood Bank.
NS&I says the changes ‘reflect changes in the wider market’ and will help it meet its net financing target.
Many banks and building societies have cut savings rates in the wake of the Bank of England base rate cut in mid-December.
It adds that existing British Savings Bonds customers who have already received their 30-day maturity letter will receive the interest rate quoted in the letter.
Last week, NS&I’s first Premium Bonds draw of 2026 saw the two £1million prizes won by those holding the maximum of £50,000.
Premium Bonds Winners
| Prize | Area | Value of bond |
| £1,000,000 | Suffolk | £10,000 |
| £1,000,000 | Berkshire | £10,000 |
| £100,000 | North Wales | £6,000 |
| £100,000 | Leeds | £10,000 |
| £100,000 | Worcestershire | £11,025 |
| £100,000 | Buckinghamshire | £10,000 |
| £100,000 | Surrey | £20,000 |
| £100,000 | Inner London | £5,000 |
More January 2026 winners
