National Savings & Investments (NS&I) has launched new British Savings Bonds, but savers may be disappointed by lower interest rates than previous offers.
2024 British Savings Bonds Rates
Term New Rate (AER) Previous Rate (AER)
2-Year 3.85% 4.00%
3-Year 3.88% 4.10%
5-Year 3.84% 4.06%
Minimum deposit: £500
Type: Fixed-rate, government-backed
Why Have Rates Dropped?
NS&I adjusts rates based on Bank of England policy and competitor savings rates.
🔹 Andrew Westhead (NS&I Retail Director):
“Changes reflect market conditions, balancing savers’ needs with taxpayer value.”
🔹 Rachel Springall (Moneyfacts):
“NS&I avoids being significantly higher than rivals. Savers should monitor accounts.”
How Do They Compare to the Best Fixed-Rate Bonds?
Provider Term Rate (AER) £10K Interest (vs NS&I)
Cynergy Bank 2-Year 4.43% +£116 more than NS&I
GB Bank 3-Year 4.42% +£162 more than NS&I
Birmingham Bank 5-Year 4.47% +£315 more than NS&I
💡 Key Takeaway:
While NS&I offers 100% security, other banks pay 0.5%-0.6% more—worth £100+ extra on a £10K deposit.
Who Should Consider NS&I Bonds?
✔ Risk-averse savers (government-backed security)
✔ Large deposits (no upper limit)
✔ Those prioritizing stability over top returns
❌ Not ideal for maximizing interest (better rates elsewhere)
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Are NS&I bonds worth it?
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Final Verdict:
NS&I’s bonds remain a safe choice, but shopping around could earn £100s more. Check MoneyfactsCompare for the latest top rates.