NS&I has announced rate hikes across its guaranteed growth bonds and guaranteed income bonds, effective May 1, 2026. This development offers a substantial boost for UK savers facing a challenging economic landscape.
The one-year British savings bond rate increased from 4.07% to 4.5% AER. The two-year bond rate rose from 3.98% to 4.48% AER. Additionally, the three-year bond rate increased from 4.02% to 4.45% AER.
The five-year bond rate also saw an increase, moving from 4.05% to 4.4% AER. These adjustments come as NS&I routinely modifies its rates to manage the flow of money into the state-owned bank and meet its net financing target.
Key facts about NS&I Premium Bonds:
- The maximum holding for Premium Bonds is £50,000.
- The prize fund rate currently stands at 3.3%.
- The odds of securing a prize are 23,000 to one for each £1 Bond.
Experts note that these changes can be crucial for those who pay tax on their savings. Anna Bowes emphasized that this choice can be important for such individuals.
Dan Coatsworth stated that NS&I effectively competes with banks as a savings brand and remains extremely popular with individuals across the country. This is particularly relevant as inflation continues to rise, impacting the financial services sector.
