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)
