National Savings and Investments has raised the rates on its fixed savings accounts, with its best rate now at 4.75 percent on its five-year Guaranteed Growth Bond. The new rates took effect on 31 July 2026 across one, two, three, and five-year Guaranteed Growth Bonds and Guaranteed Income Bonds.
The five-year Growth Bond received the biggest increase, rising 0.2 percentage points from its previous rate of 4.55 percent. Savers can choose to receive interest monthly or as a lump sum at the end of the term. A minimum deposit of £500 is required, the maximum balance is £1 million, and savers have no access to their funds for the duration of the fixed term.
New rates from 31 July 2026
- Guaranteed Growth Bond 1-year: 4.72% gross/AER (up from 4.69%)
- Guaranteed Income Bond 1-year: 4.63% gross / 4.72% AER (up from 4.60% / 4.69%)
- Guaranteed Growth Bond 2-year: 4.70% gross/AER (up from 4.67%)
- Guaranteed Income Bond 2-year: 4.61% gross / 4.70% AER (up from 4.58% / 4.67%)
- Guaranteed Growth Bond 3-year: 4.68% gross/AER (up from 4.65%)
- Guaranteed Income Bond 3-year: 4.59% gross / 4.68% AER (up from 4.56% / 4.65%)
- Guaranteed Growth Bond 5-year: 4.75% gross/AER (up from 4.55%)
- Guaranteed Income Bond 5-year: 4.65% gross / 4.75% AER (up from 4.46% / 4.55%)
How NS&I compares
Despite the increases, NS&I's rates still trail those available elsewhere. Investec is offering 5 percent on a three-year fixed savings account, and Atom Bank is offering 5 percent on a five-year fix. It is the first time since 2024 that fixed savings accounts have reached that level.
For one-year deals, GB Bank is offering 4.92 percent, though a minimum deposit of £1,000 is required. Oaknorth is offering 4.86 percent with a minimum deposit of just £1.
NS&I may still appeal to savers who value security over yield. Caitlyn Eastell, a personal finance analyst at rates scrutineer Moneyfacts, said that unlike traditional savings accounts, every pound held with NS&I is backed by HM Treasury, giving savers an unlimited Government guarantee rather than the £120,000 FSCS protection available with banks and building societies.
Savers should note that interest earned above their personal savings allowance is taxable. For the one-year Growth Bond, basic-rate taxpayers would receive an effective rate of 3.78 percent after tax, while higher-rate taxpayers would receive 2.83 percent.
ISA and investment alternatives
For savers who have not yet used their £20,000 annual ISA allowance, tax-free cash rates are also competitive. RCI Bank is offering a two-year fixed ISA at 4.80 percent, and Tandem Bank is offering a five-year fixed ISA at 4.81 percent. Trading 212 is offering a 4.51 percent easy-access ISA rate, which includes a fixed 0.91 percent boost for 12 months.
For those willing to lock money away for at least five years, investing is also worth considering. Investments can rise and fall in value, but over the long term it is possible to achieve greater returns than saving in cash.
