NS&I has increased the interest rates on nine of its savings accounts, including fixed-rate bonds and a green savings bond, as it aims to meet its financing target. The Treasury-backed bank has raised rates on one, two, three, and five-year fixed bonds, as well as a green savings bond, in a bid to attract customers and meet its net financing target.
The financing target is set by the government, which can influence what rates NS&I offers on its accounts. If the target is higher, NS&I may raise interest rates. This is the third time NS&I has hiked interest rates on the one, two, three, and five-year fixed-rate bonds in 2026.
While the boost in rates is good news for savers, there are slightly better options available from smaller providers. StreamBank is offering a 4.81% interest rate on its one-year bond, while Afin Bank is offering a two-year bond paying 4.85% interest. Afin Bank is also offering the most competitive rate on three-year fixed-rate bonds, with a 4.85% interest rate.
NS&I's Green Savings Bond has shot up the rankings and is now the joint-second best green savings account on the market, according to Moneyfacts. The significant hike to the rate on the Green Savings Bond suggests that the previous policy of offering a lower rate to attract green-conscious savers was not working.