Savings: NS&I increase interest rates on guaranteed bonds, but are they a good deal?


No quick return for NS&I Index Linked Certificates 150pxNational Savings & Investments (NS&I) savings products have always been popular, especially as all the money saved with them is 100% guaranteed by the Government.

The news that the interest rates payable on the NS&I Guaranteed Growth Bonds is about to increase will therefore be welcomed by savers.

But how competitive are the new interest rates? Read on as we investigate.

What are the new interest rates?

From 20th October the interest rates on the NS&I Guaranteed Growth Bonds will be increased, across the board, by 0.20%.

The gross interest rates, payable before tax is deducted, will therefore be:

  • 1 year fixed rate 1.45%
  • 2 year fixed rate 1.70%
  • 3 year fixed rate 1.90%
  • 5 year fixed rate 2.55%

How do the rates compare?

The minimum that can be paid into a NS&I Guaranteed Growth Bond is £500, so how do the interest rates compare if we look at accounts with the same, or lower, minimum starting balances, which are protected by the Financial Services Compensation Scheme (FSCS):

It’s clear that better interest rates than those offered by NS&I can be found if you shop around.

Of course you might need to split your savings between more than one bank or building society to ensure it is fully protected. But even if that is the case, you should easily be able to beat the rates offered by NS&I on their Guaranteed Growth Bonds.

We’re here to help

If you would like to know more about the savings rates currently available, click here to visit our best buy tables, or call 0115 933 8433 and ask for Sarah or Bev, we’ll be happy to help.