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NS&I fixed bonds now pay up to 4.5% – but can you get more elsewhere?
Rates have climbed across NS&I’s fixed-term bonds, with all its deals now among the top 20 on the market
Matthew is an award-winning journalist, specialising in savings, tax and insurance.
National Savings & Investments (NS&I) has boosted rates on its range of fixed-term bonds, offering returns that push the accounts into the top 20.
It's rare that the government-backed provider offers market-leading rates and it hasn't held the top spot since 2023. The new deals pay up to 4.5% AER, just shy of the current best.
Here, Which? takes a closer look at how the accounts stack up against other fixed-term products on the market and explains what you should know before investing.
NS&I hikes rates on fixed bonds
Savings rates for all types of accounts have been steadily dropping over the past couple of years. Rates are climbing again, however, with fixed-term deals picking up since April.
Moneyfacts data shows the average rate for a one-year bond, for example, climbed from 3.79% AER on 1 March 2026 to 3.89% at the beginning of April. The average fixed deal lasting more than a year also rose from 3.81% to 3.94% over the same period.
That may be in response to the Bank of England holding the base rate steady at 3.75% and providers second-guessing the impact of global events, including conflict in the Middle East, on the UK economy.
NS&I has joined others, raising rates on its range of fixed-term accounts. Guaranteed Growth Bonds pay interest annually and Guaranteed Income Bonds pay returns into savers' nominated current accounts every month. Both allow you to invest between £500 and £1m.
This table shows the accounts ordered by term:
| Account | Previous rate | Rate from 28 April 2026 |
|---|---|---|
| One-year Guaranteed Growth Bonds | 4.07% gross/AER | 4.5% gross/AER |
| One-year Guaranteed Income Bonds | 4% gross/4.07% AER | 4.41% gross/4.5% AER |
| Two-year Guaranteed Growth Bonds | 3.98% gross/AER | 4.48% gross/AER |
| Two-year Guaranteed Income Bonds | 3.91% gross/3.98% AER | 4.4% gross/4.48% AER |
| Three-year Guaranteed Growth Bonds | 4.02% gross/AER | 4.45% gross/AER |
| Three-year Guaranteed Income Bonds | 3.95% gross/4.02% AER | 4.37% gross/4.45% AER |
| Five-year Guaranteed Growth Bonds | 4.05% gross/AER | 4.4% gross/AER |
| Five-year Guaranteed Income Bonds | 3.98% gross/4.05% AER | 4.32% gross/4.4% AER |
Source: NS&I.
NS&I also boosted interest on its instant-access postal-only Investment Account, from 1% to 2.05% AER. This product is not, however, being promoted by the provider on its website, and you'll need to contact it directly to open.
If you're looking for an instant-access account, NS&I offers two other variable-rate options that pay higher rates. Its Direct Saver pays 3.05% gross/AER, and Income Bonds offer 3.01% gross and 3.05% AER.
- Find out more: best savings accounts.
What's the difference between gross and AER?
Like many providers, NS&I lists rates using the terms gross and AER. The former is best understood as the flat rate of interest that's actually paid, while the latter takes into account the effect of compounding – the snowball effect of income earned from interest growing together with your original investment.
Understanding the difference between gross and AER matters when it comes to Income Bonds. Because returns are paid into your nominated bank account every month, interest isn't compounded.
The lower gross rate that NS&I quotes for those products is therefore a more accurate reflection of the amount of savings income earned over the course of a year.
NS&I is unusual in formally separating its fixed-term bonds by how they pay out. With most providers, it’s the same account and you make the decision of how interest will be paid when you apply. So, when choosing, consider if you really need interest paid out and whether it’s worth it.
- Find out more: what are the different types of savings accounts?
Are there better deals elsewhere?
NS&I isn't the only provider to have raised rates recently. This table shows the top fixed-rate savings accounts, ordered by term:
| One-year fixed rate | Kuwait Finance House (Raisin exclusive*) | 4.67% | £1,000 | Internet, mobile app | On maturity |
| Two-year fixed rate | RCI Bank UK | 4.68% | £1,000 | Internet | Monthly, yearly |
| Three-year fixed rate | RCI Bank UK (Raisin exclusive*) | 4.65% | £1,000 | Internet, mobile app | On maturity (compounded annually) |
| Four-year fixed rate | Thisbank | 4.57% | £100 | Internet, mobile app | Yearly |
| Five-year fixed rate | Market Harborough Building Society | 4.7% | £5,000 | Branch, internet | Yearly |
| Five-year fixed rate | Market Harborough Building Society | 4.7% | £5,000 | Branch, internet | Monthly |
Table notes: rates sourced from Moneyfacts on 29 April 2026.
As the table shows, NS&I's bond rates pay less than the current market leaders. That said, their rates aren't too far behind the competition and all its deals are among the top 20 best available at the time of writing.
Unlike other savings providers, because funds are backed by HM Treasury, your money is 100% protected with no upper limit if NS&I were to fail.
Traditionally, NS&I has trodden a fine line between offering competitive enough rates to attract investment from savers, but nothing so dramatic that it could impact the taxpayer or distort the savings market.
There are exceptions to the rule, however. When the one-year version of NS&I's Guaranteed Growth and Income Bonds went on sale in August 2023, they led the market with a rate of 6.2% AER.
- Find out more: what is National Savings and Investments?
Is NS&I a good provider?
Each year, Which? surveys more than 6,000 savers and analyses interest rates to rate the UK’s biggest savings providers.
Find out how NS&I compares on customer satisfaction, service and rates, and see which banks are named Which? Recommended Providers in our best savings accounts guide.
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Join Which? MoneyHow long should you fix for?
Five-year bonds currently offer the best rates, marking a return to the usual rule of thumb that the longer you fix, the higher the rate – a trend that was reversed in recent years when shorter-term bonds often paid more.
The main advantage of fixing for several years is certainty: your savings are protected from possible rate cuts. But if rates keep rising, you risk missing out on better deals by locking in too long.
If you're holding out for higher rates now, bear in mind that money left in a current account is likely earning little or no interest – and inflation, which rose to 3.3% in the 12 months to April 2026, could erode its value over time.
- Find out more: the savings accounts that beat inflation.
