Government-backed NS&I's new fixed-rate savings now pay up to 4.69% interest – close to topping the tables
Government-backed NS&I has launched new fixed-rate savings accounts offering up to 4.69% interest on its one-year bond, a rate that sits just below the top of the current savings m
By MoneySavingExpert
Government-backed NS&I has launched new fixed-rate savings accounts offering up to 4.69% interest on its one-year bond, a rate that sits just below the top of the current savings market tables. This increase marks the third time in 2026 that the Treasury-backed provider has raised rates on its fixed-term bonds as it seeks to meet its net financing target for the 2026/27 financial year, which has been set at £15 billion, up from £13 billion the previous year.
The new one-year Growth option now pays 4.69% gross/AER, while the Income option offers 4.60% gross with an AER of 4.69%. Across the different term lengths, NS&I has consistently boosted returns for savers willing to lock in their money.
The two-year bond now yields 4.67% AER, rising from 4.48%, while the three-year bond has increased to 4.65% AER from 4.45%. For those looking at the longest term, the five-year bond now pays 4.55% AER, an increase from the previous 4.40% rate.
These new issues are available to both new investors and customers whose existing bonds are maturing, providing a straightforward path for savers to secure higher returns without needing to move their funds to a different provider. When compared to the broader market, NS&I’s new rates are highly competitive, often topping the tables offered by major banking groups.
The one-year rate of 4.69% is close to the top rate of 4.85% offered by MBNA, which is part of Lloyds Banking Group, and beats the 4.6% rate available from Marcus by Goldman Sachs if savers require access to their money with a penalty. For the two-year term, NS&I’s 4.67% sits above the 4.59% rate offered by Co-op Bank, a major big-name competitor.
Similarly, the three-year bond at 4.65% outperforms the Co-op Bank’s 4.59%, while the five-year bond at 4.55% is higher than the 4.5% rate from Leeds Building Society. In addition to the standard fixed-term bonds, NS&I has also increased the rate on its three-year Green Savings Bond, which now pays 4.45% AER, a significant rise from the previous 3.82%.
This adjustment is described by analysts as a striking move, transforming the bond from a fairly miserable rate to a reasonably competitive one for those wishing to support green initiatives while earning interest. The Green Savings Bond is now on general sale with immediate effect, offering a fixed rate over the three-year fixed term.
Savers can deposit between £500 and £1 million into these new accounts, with every penny remaining totally safe due to the backing of the Treasury. This total safety is a key differentiator for NS&I, as funds held with the institution are completely protected, unlike deposits at some other financial institutions that may rely on different protection schemes.
The provider has raised rates on nine of its savings accounts in total, including both Guaranteed Growth and Guaranteed Income bonds across the one, two, three, and five-year terms, as well as the Green Savings Bond. The decision to hike rates comes as NS&I responds to shifts in the financial landscape and the competitive savings market, aiming to balance the interests of savers, taxpayers, and the wider financial services industry.
By offering rates that are close to topping the tables, NS&I is positioning itself as a strong contender for savers who prioritise safety alongside returns, particularly those who may be wary of the rates offered by smaller building societies or who prefer the security of a government-backed institution. The new rates are correct as of Tuesday 23 June 2026, and all figures are expressed as Annual Equivalent Rates (AER), with monthly and annual rates being the same unless otherwise stated.
For Cheshire residents and savers across the UK, these new fixed-rate options provide a clear opportunity to lock in good rates for one to five years with total safety. The consistency of the rate increases across all term lengths suggests a strategic move by NS&I to attract a broad range of customers, from those looking for short-term flexibility to those planning for longer-term financial goals.
With the one-year bond now at 4.69%, the provider is effectively challenging the dominance of big-name banks while maintaining its reputation as a secure place for savings. As the savings market remains competitive, NS&I’s latest rate adjustments ensure that it remains a relevant and attractive option for those looking to maximise their interest earnings without compromising on the security of their funds.