NS&I British Savings Bonds Relaunch: New Rates and What They Mean for Savers

National Savings & Investments (NS&I) has introduced new issues of its British Savings Bonds with increased interest rates across all terms. The updated products, which include Guaranteed Growth Bonds and Guaranteed Income Bonds, went on sale on 28 April 2026, offering rates between 4.40% and 4.50% AER depending on the term chosen.

These fixed-term savings products are backed by HM Treasury, making them one of the safest savings options available in the UK. The relaunch follows adjustments to NS&I’s net financing targets and reflects wider movements in the savings market since the beginning of 2026.

Funds invested in British Savings Bonds support general UK government borrowing. This differs from NS&I’s Green Savings Bonds, which are used for environmentally focused projects. The new issues are available to UK residents aged 16 and over, with a minimum investment of £500 and a maximum of £1 million per issue per person.

What are the current NS&I British Savings Bonds rates?

• NS&I relaunched British Savings Bonds on 28 April 2026 with new issues for 1, 2, 3, and 5-year terms.
• The 1-year Guaranteed Growth Bond (Issue 89) offers 4.50% gross/AER, up from 4.2% in January 2026.
• There is no age restriction. The common search phrase ‘NS&I Savings Bonds for over 65’ reflects a misunderstanding; bonds are open to all UK residents aged 16+.
• Interest is taxable, but most savers can earn up to £1,000 tax-free under the Personal Savings Allowance, or £500 for higher-rate taxpayers.
• British Savings Bonds come in two variants: Guaranteed Growth Bonds, where interest is added to the bond, and Guaranteed Income Bonds, where interest is paid out regularly.
• No early withdrawals are permitted. Funds are locked in until the bond matures.
• The bonds offer 100% capital security, with no upper limit on protection beyond the government’s guarantee.

Rates are sourced from NS&I’s official British Savings Bonds page and the NS&I interest rates page. Previous rates from January 2026 are included for comparison. The 1-year Growth Bond rate, for example, rose from 4.2% to 4.5%.

Are NS&I British Savings Bonds for over 65 only?

No. British Savings Bonds are available to all UK residents aged 16 and over. There is no specific age restriction that limits these bonds to people over 65. The misconception likely arises because older savers often seek fixed-term products with regular income options, which the Guaranteed Income Bonds provide.

Can younger investors buy British Savings Bonds?

Yes. Anyone aged 16 or older who is a UK resident can apply. There is no upper age limit either. The bonds can be held individually or jointly. Couples can invest up to £2 million jointly across a single issue.

Is there an age limit for British Savings Bonds?

The minimum age is 16 for most applications. For trusts and joint accounts, specific rules apply and should be verified directly with NS&I’s products page. There is no maximum age.

Are NS&I British Savings Bonds tax-free?

Interest earned on British Savings Bonds is taxable. It is paid gross, meaning no tax is deducted at source. However, most savers will not pay tax on their interest due to the Personal Savings Allowance.

How much interest can I earn tax-free from NS&I bonds?

Basic-rate taxpayers can earn up to £1,000 in savings interest tax-free each year. Higher-rate taxpayers have a £500 allowance. Additional-rate taxpayers receive no allowance. Interest from British Savings Bonds counts toward these limits.

Do I need to report interest on my tax return?

If your total savings interest exceeds your Personal Savings Allowance, you must report it via Self Assessment. For those whose interest stays within the allowance, no reporting is needed. Interest from Guaranteed Income Bonds is paid monthly; from Guaranteed Growth Bonds, it is paid as a lump sum at maturity.

How do British Savings Bonds compare to Premium Bonds and other NS&I products?

British Savings Bonds and Premium Bonds serve different purposes. British Savings Bonds offer a guaranteed fixed interest rate for a set term. Premium Bonds offer the chance to win tax-free prizes, but no guaranteed return. The average prize fund rate for Premium Bonds was cut to 3.3% from April 2026, with odds of winning at 23,000 to 1.

Which is better: British Savings Bonds or Premium Bonds?

The choice depends on whether you want certainty. British Savings Bonds guarantee your interest rate for the full term. Premium Bonds do not guarantee any return, but prizes are tax-free. For savers who need predictable income, British Savings Bonds are more suitable.

Are British Savings Bonds safer than other fixed-rate bonds?

Yes. NS&I bonds are 100% backed by HM Treasury. This means the government guarantees your capital and interest. In contrast, most bank and building society savings accounts are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person. For savers with more than £85,000, NS&I bonds offer unlimited protection.

How do they compare to the best 1-year fixed rate bonds?

NS&I’s 1-year rate of 4.50% is competitive with major high street banks but is not the best available. Kent Reliance, for example, offered 4.67% for 1-year fixed bonds. MBNA and Lloyds, as ‘big name’ providers, offered 4.66%. NS&I’s advantage lies in security, not rate.

Data sourced from MoneySavingExpert’s analysis and Raisin UK’s rate comparison. Market rates are as of April 2026.

What is the difference between Guaranteed Growth Bonds and Guaranteed Income Bonds?

Both are fixed-term products. The difference is how interest is paid. Guaranteed Growth Bonds add all interest to the bond and pay it as a single lump sum at maturity. Guaranteed Income Bonds pay interest monthly, providing a regular income stream.

Which type should I choose?

If you do not need regular income and prefer to let your interest compound, the Growth Bond is more suitable. If you want a monthly payment, for example to supplement a pension, the Income Bond is the better option. The underlying interest rates are similar, with the Growth Bond offering a slightly higher gross rate on some terms.

How do interest payments work for each?

For Guaranteed Growth Bonds, interest is calculated on the full investment amount and paid at the end of the term. For Guaranteed Income Bonds, interest is calculated and paid into your nominated account each month. The AER quoted is identical for both products within the same term, although the gross rate differs slightly for the Income Bond due to the monthly payout structure.

What is the timeline of the NS&I British Savings Bonds relaunch?

The reintroduction and rate changes of these bonds have occurred over a series of steps. Key events are outlined below.

1. Pre-2024: NS&I offered British Savings Bonds at various rates. Older issues were eventually paused or discontinued.
2. Early 2026: Rates were updated from January 2026 levels. The 1-year Growth Bond rate, for example, stood at 4.2%.
3. 28 April 2026: Official relaunch of new issues across 1, 2, 3, and 5-year terms with increased rates. The 1-year rate rose to 4.50%.
4. Ongoing: Bonds remain on sale until further notice. Rates are fixed per issue and may be adjusted in future releases.

Sources for this timeline include the NS&I official page and MoneySavingExpert’s coverage.

What is confirmed and what remains uncertain about these bonds?

Why did NS&I relaunch British Savings Bonds?

NS&I operates under a net financing target set by the government. The relaunch of British Savings Bonds with higher rates reflects an effort to attract more savers and meet those borrowing requirements. The rates were increased to track market movements following base rate shifts since the start of 2026.

According to MoneySavingExpert’s analysis, the new rates are competitive but not market-leading. The main draw for savers is the security of a government guarantee, especially for those with larger sums. The relaunch also includes both Growth and Income versions to cater to different needs, such as pensioners who may prefer regular monthly payments.

In contrast, NS&I’s Green Savings Bonds, a separate product, were relaunched around May 2026 with a 3.82% AER for a 3-year fixed term. Those funds are used for environmental and nuclear projects, unlike British Savings Bonds which support general government borrowing.

What do the official sources and analysts say?

“New Issues of 1- and 5-year British Savings Bonds (Guaranteed Growth Bonds and Guaranteed Income Bonds) have gone back on sale today, along with increased interest rates.”

— NS&I Corporate News Release, 15 April 2025 (reflecting ongoing issuance)

“NS&I has refreshed its range of fixed-term ‘British Savings Bonds’ by bringing back its one-year and five-year options and boosting rates.”

— MoneySavingExpert Analysis, 2026

What should you do next?

For savers considering British Savings Bonds, the first step is to check the most current rates on the NS&I official website, as rates are fixed per issue and may change in future releases. It is also worth considering how the interest will affect your tax position, particularly if you have other savings income. Comparing rates with top fixed-term bonds from other providers is advisable, especially for those who do not require the unlimited government guarantee. For those considering tax-free alternatives, an ISA Allowance 2024/25 – Limits, Rules and Budget 2025 Changes may offer lower headline rates but tax-free returns. Another alternative for short-term savings is the Post Office Savings Account: Best Options, Rates & Limits.

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