NS&I has announced its third consecutive interest rate hike this year on its fixed-rate savings products. The government-backed bank has increased rates across eight of its fixed-rate accounts, specifically new issues of its one, two, three, and five-year British Savings Bonds.
The new rates bring NS&I's top interest rate to 4.75% for the five-year guaranteed growth bond, while the one-year guaranteed growth bond now offers 4.72%. Andrew Westhead, retail director at NS&I, stated that these increases provide savers with improved fixed-term rates and certainty regarding their returns.
While the new rates make NS&I's British Savings Bonds more competitive, they do not offer the absolute highest interest rates available in the market. For instance, NS&I's one-year fixed rate growth bond at 4.72% is above the market average of 4.27% but remains lower than the top one-year fixed rate saver from GB Bank, which offers 4.92%.
Caitlyn Eastell, a personal finance analyst at Moneyfacts, noted that the rate increases are a welcome boost for savers. She added that some savers might choose NS&I for the unlimited government guarantee on deposits, backed by HM Treasury, which differs from the £120,000 FSCS protection offered by other banks and building societies.