National Savings & Investments (NS&I) has boosted rates on its fixed bonds, with some now paying over 5% AER. This marks the fourth rate hike by the government-backed provider since June.
The increase in NS&I rates comes amid a broader surge in fixed-term savings accounts offering 5% AER or more. Moneyfacts data indicates that on 5 August 2026, there were just three such deals, but by 8 October 2026, this number had grown to 75.
Other providers have also increased their rates recently. Investec Save, for example, raised its two-year fix from 5.02% to 5.16% and its three-year fixed bond from 5.02% to 5.19%. Marcus by Goldman Sachs increased its one-year fixed-rate account from 4.3% AER to 4.75%.
Despite the Bank of England base rate remaining at 3.75% since December 2025, savings rates have climbed since March 2026 to their highest level since 2024. This trend could be influenced by expectations of future base rate increases due to higher inflation, as well as competition among providers and demand for deposits.