Nine NS&I savings accounts now offer higher interest rates, as the Treasury-backed bank moves to attract more customer deposits and meet an increased government financing target. The changes, effective from 23 June 2026, affect the full range of Guaranteed Growth and Guaranteed Income bonds with one, two, three and five-year terms, as well as the three-year Green Savings Bond. It marks the third time in 2026 that NS&I has raised rates on its fixed-term bonds.
Rate increases across nine accounts
The new rates mean savers will earn 4.69% gross/AER on the one-year Guaranteed Growth bond (up from 4.50%), while the one-year Guaranteed Income bond moves to 4.6% gross (4.69% AER). Two-year bonds rise to 4.67% gross/AER for the Growth version and 4.58% gross (4.67% AER) for Income. Three-year bonds increase to 4.65% gross/AER (Growth) and 4.56% gross (4.65% AER for Income). The five-year bonds now pay 4.55% gross/AER (Growth) and 4.46% gross (4.55% AER for Income).
The Green Savings Bond, which funds environmentally focused projects under the UK Government Green Financing Framework, sees a larger jump from 3.82% gross/AER to 4.45% gross/AER. All nine accounts are fixed-term, meaning savers cannot withdraw their money before the end of the term. After maturity, customers can withdraw or reinvest into another NS&I product. Applications are made via the NS&I website. The Guaranteed Growth and Income bonds require a minimum investment of £500 and allow up to £1 million per person; the Green Savings Bond has a £100 minimum and a £100,000 maximum.
Government financing target drives rate decisions
The rate rises are directly linked to the government’s net financing target for NS&I, which is set by the Treasury and influences the interest rates the institution offers. For the 2026/27 financial year, the target stands at £15 billion, up from £13 billion in 2025/26 — itself a sharp increase from £7.5 billion in 2023/24. When the target is higher, NS&I may need to raise rates to attract sufficient deposits from savers.
Sarah Coles, head of personal finance at investment platform AJ Bell, pointed to the wider market pressures. “The savings market is impressively competitive right now, and NS&I has entered the fray,” she said. “Banks are pulling out all the stops to compete, keeping fixed rate deals higher and forcing NS&I to raise rates again to attract the cash it needs.” Coles also noted that the substantial hike to the Green Savings Bond rate suggested “the previous policy of hoping green-conscious savers would be happier to overlook a much lower rate for the bonds just wasn’t working in attracting the cash” NS&I wanted.
How NS&I rates compare with the market
Despite the improvements, NS&I’s new rates fall short of the best deals available elsewhere. Smaller providers, whose deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per eligible person per authorised firm, offer higher returns. StreamBank pays 4.81% on its one-year bond, while Afin Bank offers 4.8%. On two-year fixed deals, Market Harborough Building Society leads with 4.86%, followed by Afin Bank at 4.85%. For three-year bonds, Afin Bank again tops the table at 4.85%, with thisbank at 4.82%. The five-year market is headed by Afin Bank at 4.9%, with Atom Bank at 4.85%.
NS&I does offer one distinct advantage: all money invested with the institution is 100% secure, backed by HM Treasury. This makes it particularly attractive for savers holding sums above the FSCS limit, which only covers deposits up to £120,000 per banking licence (with temporary high-balance protection up to £1.4 million for six months in certain circumstances). The Green Savings Bond has also climbed the rankings: according to Moneyfacts, it is now the joint-second best green savings account on the market, beaten only by Castle Trust Bank’s three-year e-Saver account paying 4.54% interest.
