NS&I has increased the interest rate on its fixed-rate bonds, offering top returns of up to 4.5% AER. The move is likely to be welcome news for savers looking for a low-risk way to grow their savings. NS&I's one-year and five-year fixed-rate bonds now offer rates of up to 2.15% and 3.45% respectively, while its three-year bond pays up to 4.5% AER.
Savers can choose from a range of terms to suit their needs, including one-year, two-year, three-year, four-year and five-year options. However, it's worth noting that alternative providers may offer even more competitive rates – although some may come with stricter conditions or restrictions on withdrawals.
For example, National Savings and Investments (NS&I) rivals such as NSI, Shawbrook Bank and Charter Savings Bank all currently offer higher rates than NS&I for one-year fixed-rate bonds. However, these rates are subject to change and savers should always read the small print before making a decision.