Latest news with #BritishSavingsBonds
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Scotsman
28-07-2025
- Business
- Scotsman
NS&I: new one-year bonds offer higher rates
Safe, simple, and fully protected — but are NS&I's new bonds worth locking your cash away for? 💷 Sign up to the weekly Cost Of Living newsletter. Saving tips, deals and money hacks. Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... NS&I has increased its one-year British Savings Bond rate to 4.18% AER Bonds offer guaranteed interest but no prize draws like Premium Bonds Money is fully protected by the government up to £1 million per person Rates remain lower than some top fixed-rate bonds on the market Ideal for savers seeking safety and steady returns without risk While Premium Bonds give savers the thrill of monthly prize draws, NS&I's latest savings product offers something simpler: certainty. The government-backed savings provider has just relaunched its one-year British Savings Bonds – available as either Guaranteed Growth or Guaranteed Income Bonds – with a better interest rate of 4.18% AER. Advertisement Hide Ad Advertisement Hide Ad Bonds are a type of savings product where you lend money to a government or company for a set period of time, and in return, they agree to pay you interest. At the end of the term, you get your original money back. That's a small increase from the previous 4.05%, and it comes as many other savings providers are starting to lower their fixed-rate offers. So, are these bonds a hidden gem – or are there better ways to grow your money? (Photo: PAUL ELLIS/AFP via Getty Images) | AFP via Getty Images Can you win prizes with one-year British Savings Bonds? Unlike NS&I's flagship Premium Bonds, where you could win up to £1 million in monthly tax-free prizes but earn no interest, these new one-year bonds offer guaranteed returns – but no chance of a prize windfall. They're ideal for those who want stability over surprise, particularly as the wider market anticipates further base rate cuts by the Bank of England later this year. Advertisement Hide Ad Advertisement Hide Ad 'NS&I has bucked the trend in a falling market,' says Sarah Coles, head of personal finance at Hargreaves Lansdown. 'Elsewhere, rates are dropping – so this small bump stands out.' So if you're after thrills and tax-free prizes, Premium Bonds are still the place to dream big. But if steady growth with zero risk is more your style, NS&I's new bonds might be the safe harbour you're looking for. Are one-year British Savings Bonds worth it? Bonds are a way to save money by locking it away for a set period. You lend your money to a government or company, and in return, they pay you interest. When the term ends, you get your money back. Advertisement Hide Ad Advertisement Hide Ad With NS&I's bonds, your money is locked away for a fixed time, and you earn a guaranteed return. The one-year British Savings Bonds are available as either Guaranteed Growth - where interest is paid at the end of the one-year term - or Guaranteed Income Bonds, where interest is paid monthly into your bank account. At 4.18%, the new one-year rate still lags behind top-paying fixed-rate bonds on the market, which can offer upwards of 4.5% AER. But NS&I has one trump card: 100% Treasury-backed protection. That means your money is fully safe up to £1 million per person - you'll need to invest a minimum of £500 - far above the £85,000 cap offered by most banks under the FSCS. Advertisement Hide Ad Advertisement Hide Ad 'For some savers, that government-backing is the main draw,' says Laura Suter of AJ Bell. 'It removes the hassle of spreading money across banks.' NS&I's move is seen as a tactical one – an attempt to keep existing customers on board as their previous bonds mature, while drawing in new savers with its trademark security. But it's unlikely to spark a stampede. The current offer is a far cry from the 6.2% rates available on similar NS&I bonds just two years ago – a figure described by Suter as 'a relic from another era.' If you're after peace of mind and don't want to shop around or worry about FSCS limits, these bonds might tick your boxes. But if maximising returns is your priority – and you're willing to accept a bit more risk – better rates are still out there. Advertisement Hide Ad Advertisement Hide Ad Are you struggling to make ends meet as costs continue to rise? You can now send your stories to us online via YourWorld at It's free to use and, once checked, your story will appear on our website and, space allowing, in our newspapers.
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Scotsman
28-07-2025
- Business
- Scotsman
NS&I: new one-year bonds offer higher rates
Safe, simple, and fully protected — but are NS&I's new bonds worth locking your cash away for? 💷 Sign up to the weekly Cost Of Living newsletter. Saving tips, deals and money hacks. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... NS&I has increased its one-year British Savings Bond rate to 4.18% AER Bonds offer guaranteed interest but no prize draws like Premium Bonds Money is fully protected by the government up to £1 million per person Rates remain lower than some top fixed-rate bonds on the market Ideal for savers seeking safety and steady returns without risk While Premium Bonds give savers the thrill of monthly prize draws, NS&I's latest savings product offers something simpler: certainty. The government-backed savings provider has just relaunched its one-year British Savings Bonds – available as either Guaranteed Growth or Guaranteed Income Bonds – with a better interest rate of 4.18% AER. Advertisement Hide Ad Advertisement Hide Ad Bonds are a type of savings product where you lend money to a government or company for a set period of time, and in return, they agree to pay you interest. At the end of the term, you get your original money back. That's a small increase from the previous 4.05%, and it comes as many other savings providers are starting to lower their fixed-rate offers. So, are these bonds a hidden gem – or are there better ways to grow your money? (Photo: PAUL ELLIS/AFP via Getty Images) | AFP via Getty Images Can you win prizes with one-year British Savings Bonds? Unlike NS&I's flagship Premium Bonds, where you could win up to £1 million in monthly tax-free prizes but earn no interest, these new one-year bonds offer guaranteed returns – but no chance of a prize windfall. They're ideal for those who want stability over surprise, particularly as the wider market anticipates further base rate cuts by the Bank of England later this year. Advertisement Hide Ad Advertisement Hide Ad 'NS&I has bucked the trend in a falling market,' says Sarah Coles, head of personal finance at Hargreaves Lansdown. 'Elsewhere, rates are dropping – so this small bump stands out.' So if you're after thrills and tax-free prizes, Premium Bonds are still the place to dream big. But if steady growth with zero risk is more your style, NS&I's new bonds might be the safe harbour you're looking for. Are one-year British Savings Bonds worth it? Bonds are a way to save money by locking it away for a set period. You lend your money to a government or company, and in return, they pay you interest. When the term ends, you get your money back. Advertisement Hide Ad Advertisement Hide Ad With NS&I's bonds, your money is locked away for a fixed time, and you earn a guaranteed return. The one-year British Savings Bonds are available as either Guaranteed Growth - where interest is paid at the end of the one-year term - or Guaranteed Income Bonds, where interest is paid monthly into your bank account. At 4.18%, the new one-year rate still lags behind top-paying fixed-rate bonds on the market, which can offer upwards of 4.5% AER. But NS&I has one trump card: 100% Treasury-backed protection. That means your money is fully safe up to £1 million per person - you'll need to invest a minimum of £500 - far above the £85,000 cap offered by most banks under the FSCS. Advertisement Hide Ad Advertisement Hide Ad 'For some savers, that government-backing is the main draw,' says Laura Suter of AJ Bell. 'It removes the hassle of spreading money across banks.' NS&I's move is seen as a tactical one – an attempt to keep existing customers on board as their previous bonds mature, while drawing in new savers with its trademark security. But it's unlikely to spark a stampede. The current offer is a far cry from the 6.2% rates available on similar NS&I bonds just two years ago – a figure described by Suter as 'a relic from another era.' If you're after peace of mind and don't want to shop around or worry about FSCS limits, these bonds might tick your boxes. But if maximising returns is your priority – and you're willing to accept a bit more risk – better rates are still out there. Advertisement Hide Ad Advertisement Hide Ad
Daily Record
25-07-2025
- Business
- Daily Record
NS&I launches new one-year British Savings Bonds offering higher interest rates
NS&I is backed by the Treasury, so money held with it has 100 per cent security. Savings giant NS&I has launched new versions of its one-year British Savings Bonds with increased interest rates. One finance expert described the move as bucking 'the trend in a falling market'. British Savings Bonds are fixed-term issues of NS&I's Guaranteed Growth Bonds and Guaranteed Income Bonds. They are available to new customers and those with existing bonds which are due to mature. The new rate for the one-year Growth and Income options is 4.18 per cent AER (annual equivalent rate), the previous rate was 4.05 per cent AER. NS&I is backed by the Treasury, so money held with it has 100 per cent security. Andrew Westhead, NS&I retail director, said: 'I am pleased that we can offer savers - both new and those with our existing one-year bonds which are about to mature - this new opportunity to save. '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.' Guaranteed Growth Bonds and Guaranteed Income Bonds are available to customers wanting a guaranteed rate for a fixed-term of one, two, three or five years. Funds cannot be withdrawn early with fixed-term accounts. Savers need a minimum investment of £500 and can invest a maximum of £1 million per person in each issue. After the fixed-term period, savers have the choice to withdraw their cash or reinvest into a new term. Guaranteed Growth Bonds are a lump sum investment that earns a fixed rate of interest over a set period. Interest is added to the bond on each anniversary of the investment. Guaranteed Income Bonds are a lump sum investment that pays out monthly income at a fixed rate of interest over a set period. Earlier in July, NS&I launched some new versions of its two, three and five-year British Savings Bonds with lower rates than previously offered. It also lowered the rate on a Junior Isa from July 18, from 4.00 per cent to 3.55 per cent. Many commentators expect the Bank of England base rate to be cut further this year, which could be a further blow to savers. Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'NS&I has bucked the trend in a falling market and boosted the rate on its one-year bonds. 'Elsewhere, savings have been gradually dropping across the board. Fixed terms have generally held up slightly better than easy access accounts, but they're still trending downwards. 'NS&I itself cut the rate on its bonds fixed for two, three and five years earlier this month – along with cuts to the Premium Bond prize rate in August. 'It's not worth getting too excited about though. The one-year bond went back on sale in April this year, and the rate at the time was a dismal 4.05%. 'NS&I has to offer a rate somewhere in the middle of the pack, so it doesn't tend to be market leading, but clearly at this rate it wasn't pulling in enough cash. 'The rise today still leaves it well behind the market leaders - which offer more than 4.5 per cent - but it will be hoping it has done enough to retain savers with maturing one-year bonds and to attract new cash.' Laura Suter, director of personal finance at AJ Bell, said: 'The rate on offer is a far cry from the original one-year British Savings Bond that launched two years ago which proved to be a sell-out success, being pulled from sale after just five weeks. 'But back then savers were offered a generous 6.2% – a rate that now looks like a relic from another era. 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. 'For some savers, the government-backing of NS&I will be the main draw. With full protection on deposits up to £1 million, it removes the hassle of having to split savings across multiple banks to stay under the FSCS (Financial Services Compensation Scheme) limit of £85,000. 'But for others, that safety net comes at a cost. You can get better returns elsewhere if you're willing to forgo the government guarantee.'
Daily Mail
24-07-2025
- Business
- Daily Mail
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 Dax Harkins 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.
The Independent
03-07-2025
- Business
- The Independent
NS&I British Savings Bonds rates slide
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.
