# NS&I boosts rates on British Savings Bonds to reflect changes in wider market

By Sarah Coles — 2026-10-06

Sarah Coles, head of personal finance at AJ Bell, insists NS&I is doing all it can to remain competitive after putting new issues of British Savings Bonds on sale with increased rates.

She said: “NS&I is stepping up its game to compete in a tough market. It’s boosting the rates on its fixed rate bonds for the fourth time in less than four months.

“They’re pretty substantial hikes too, which put them within shouting distance of the best on the market. It’s a sign of just how hard the organisation is having to work to attract cash.

“NS&I has a duty to balance the needs of savers with those of taxpayers, so they are careful not to over-pay.

“However, they are pushing harder than they usually do. The three-year rate is now among the top 10 most competitive in the market, while the fixed rates for other periods are in the top 20.

“Loyal NS&I customers who are wedded to the brand will be paying less of a price than in previous years for their staying power if they snap up these fixed rate deals.

“However, you can still make more money elsewhere – with 5.12 per cent available over a year and 5.35 per cent over five. For those drawn by the 100 per cent Treasury guarantee, there’s every chance they have the protection they need from the FSCS guarantee on the first £120,000 saved with each institution.

“So it’s well worth checking cash savings hubs and online banks, which tend to offer competitive deals.

“The fact NS&I’s rates have been hiked yet again owes much to the fact that the market is so competitive right now. In August, NS&I revealed that in the first three months of its financial year it had raised just £1 billion of its £15 billion target, so it needs to knuckle down to secure some serious fundraising. It’s going to hope that this latest round of hikes will be enough to move the dial.

“Premium Bond fans will be keen to know whether we will see the Premium Bond prize rate rise again too.

“We’ve already seen it increased in July and September, so it currently sits at 4.35 per cent. Another increase could make the bonds more attractive and raise even more money for N&SI, even if the prize fund rate doesn’t actually mean holders are guaranteed to make any money on their holding.

“It isn’t out of the question considering how ferocious the savings market is right now, especially if the Bank of England decides to raise rates next month.”

Canonical: https://experts.pressassociation.com/expert/42/views/6a487fea04482af1