National Savings & Investments (NS&I) has launched new British Savings Bonds, but with significantly lower rates than previous offers. Here’s what savers need to know.
2024 British Savings Bonds Rates (vs Previous Rates)
| Term | New Rate (AER) | Previous Rate (AER) | Drop |
|---|---|---|---|
| 2-Year | 3.85% | 4.00% | -0.15% |
| 3-Year | 3.88% | 4.10% | -0.22% |
| 5-Year | 3.84% | 4.06% | -0.22% |
Minimum deposit: £500
Type: Government-backed fixed-rate bonds
Why Have Rates Fallen?
🔹 Andrew Westhead (NS&I Retail Director):
“Changes reflect current market conditions and ensure balance between savers, taxpayers, and financial services.”
🔹 Rachel Springall (Moneyfacts):
“NS&I adjusts rates to stay competitive. Savers should compare options regularly.”
The cuts follow the Bank of England’s base rate reduction and similar moves by high-street banks.
How Do They Compare to the Best Fixed-Rate Bonds?
| Provider | Term | Rate (AER) | £10K Interest (vs NS&I) |
|---|---|---|---|
| Cynergy Bank | 2-Year | 4.43% | +£116 more |
| GB Bank | 3-Year | 4.42% | +£162 more |
| Birmingham Bank | 5-Year | 4.47% | +£315 more |
💡 Key Takeaway:
While NS&I offers 100% security, competitors pay 0.5%-0.6% more—worth £100s extra on £10K deposits.
Who Should Consider NS&I Bonds?
✔ Risk-averse savers (government-backed security)
✔ Large deposits (no upper limit)
✔ Those prioritizing stability over top returns
❌ Not ideal for maximizing interest (better rates elsewhere)
Junior ISA Rate Also Falling
NS&I is also cutting its Junior ISA rate (exact details TBC), following the savings market trend.
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Final Verdict:
NS&I’s bonds remain a safe choice, but shopping around could earn £100s more. Check MoneyfactsCompare for the latest top rates.
Need a rate tracker or tax implications breakdown? Let me know!
