NS&I launches new one-year British Savings Bonds: How does the rate compare?

National Savings & Investments has launched a new one-year fixed-rate bond for those wanting to lock their money away. 

The Treasury-backed bank is offering fresh issues of its one-year Guaranteed Growth and Guaranteed Income Bonds, known as British Savings Bonds. 

These are open to new customers as well as existing ones whose bonds are maturing. 

The new one-year bonds pay 4.18 per cent, on both the growth and income options. 

This is more than the previous issues of the bonds, released in April this year, which paid 4.05 per cent.

However, the rate still falls well short of the best-buy one-year fixed deals available elsewhere. 

There are plenty of one-year fixed deals paying more than 4.18 per cent, which you can find on This is Money’s best-buy savings rate tables. 

Blow to NS&I savers with maturing bonds 

It also comes as a blow to the thousands of savers who took out NS&I’s 5.15 per cent one-year fixed rate bond last summer, which is due to mature from the end of this month. 

NS&I has not confirmed whether it will unveil another exclusive one-year deal for these savers, as it did last summer when its best ever 6.2 per cent one-year bond came up to maturity. 

When NS&I launched its 6.2 per cent one-year fixed-rate bond in August 2023, 225,000 savers rushed to take it out and piled £10billion in. 

It was replaced by an issue paying 5.15 per cent last summer, exclusively for existing savers. 

Around 80 per cent of savers who had the 6.2 per cent one-year fix matured into the version paying 5.15 per cent, meaning around 180,000 savers will now be faced with a decision about what to do with their savings next as this bond comes up to maturity. 

Laura Suter, director of personal finance at stockbroker AJ Bell said: ‘With interest rates edging down and other providers trimming their fixed-rate deals, NS&I has clearly tried to find a middle ground that will be attractive enough to draw in some money, but not so generous that it’s swamped by demand.’

What are the best one-year fixed savings rates?

Savers can do better elsewhere. The top one-year fixed rate bond on the market pays 4.53 per cent, and is offered by providers GB Bank and Conister Bank. 

On a £20,000 balance the NS&I deal would generate £836 in interest in one year and on £50,000 it would be £2,090. 

A best-buy 4.53 per cent rate would net you £906 and £2,265 respectively. 

For this reason, Andrew Hagger, founder of personal finance website MoneyComms says: ‘I wouldn’t be surprised to see a few NS&I customers looking elsewhere when their current deal expires.’

NS&I retail director Andrew Westhead said: ‘In launching this new Issue, NS&I continues to balance the interests of its savers, taxpayers and the broader financial services sector – and to work towards its annual net financing target.

NS&I has a net financing target of £12billion within a range of plus or minus £4billion for the financial year 2025/26.