- NS&I , the state-backed savings provider, has increased the interest rates on its British Savings Bonds across one, two, three, and five-year fixed-term durations, aiming to meet its net financing target and respond to current financial market conditions.
- The new rates for British Savings Bonds are 4.69% AER for one year, 4.67% AER for two years, 4.65% AER for three years, and 4.55% AER for five years, representing increases from their previous offerings.
- A new issue of NS&I’s three-year Green Savings Bonds has also seen a significant rate increase, rising from 3.82% to a more competitive 4.45% AER.
- Andrew Westhead, NS&I retail director, confirmed that these adjustments are part of a regular review to ensure their products remain competitive and reflect the evolving fixed-term savings market.
- Industry expert Sarah Coles from AJ Bell noted that NS&I's rate hikes are a response to the highly competitive savings market, with banks "pulling out all the stops," and suggested the substantial increase in Green Bonds indicates previous lower rates were not attracting sufficient investment.
IN FULL
