NS&I cuts interest rates on 7 savings products – full list of changes
The cut means NS&I’s savings bonds are far less competitive than other fixed term bonds on the market. We look at what’s changed.


NS&I has cut interest rates on seven of its savings products, including the Junior ISA.
The government-backed savings provider today launched new issues of their two, three, and five-year British Savings Bonds back on the market, but with lower interest rates.
The new issues have interest rates that are between 15 and 22 basis points lower than the previous issue in April, making them far from the best savings accounts on the market.
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NS&I provides two types of bonds – Guaranteed Growth Bonds and Guaranteed Income Bonds – which are available to both new customers and those with maturing bonds.
Customers will need to deposit a minimum of £500, while the maximum amount is £1 million per person in each issue.
Guaranteed Growth Bonds, fixed-term savings accounts designed not to be accessed until maturity, come in three different terms (two, three, and five years) and pay different rates.
The two-year growth bond will now pay interest of 3.85% (down from 4% in April), the three-year growth bond pays 3.88% interest (down from 4.1%), and the five-year growth bond provides 3.84% interest (down from 4.06%).
Meanwhile, NS&I’s new issues of Guaranteed Income Bonds also have lower interest rates.
Guaranteed Income Bonds are a lump sum investment held for a fixed term that, instead of adding interest to the bond, pays interest earned to your nominated bank account.
The new issue for the two-year income bond will pay 3.79% gross interest/3.85% AER (down from 3.93% gross/4% AER), the three-year bond will pay 3.82% gross/3.88% AER (down from 4.03% gross/4.1% AER), and the five-year bond will pay 3.78% gross/3.84% AER (down from 3.99% gross/4.06% AER).
The best fixed term savings accounts on the market right now provide up to 4.43% interest on two-year bonds, 4.42% on three-year bonds, and 4.47% on five-year bonds.
Similarly, the best fixed-rate cash ISAs on the market also beat NS&I’s offerings. They provide up to 4.3% on two-year bonds, 4.25% on three-year bonds, and 4.24% on five-year bonds.
Andrew Westhead, NS&I Retail Director, said the cuts were “in response to changes in the wider market” and were necessary to ensure the organisation was “balancing the interests of savers, taxpayers and the broader financial services sector”.
NS&I cuts interest rates on Junior ISA
Alongside the cuts to British Savings Bonds, NS&I has also reduced the Junior ISA (JISA) interest rate from 4% to 3.55%.
The 45 basis point fall will come into effect from 18 July, making the junior savings account far from the best on the market.
Currently, both Beverley Building Society and Loughborough Building Society offer a Junior ISA paying up to 4.15%, and other providers also beat NS&I’s new rate.
Westhead said the interest rate cut on the Junior ISA was the first change in nearly two years, arguing this reflected NS&I’s “ongoing commitment to helping young people save for their future”.
Full list of changes to seven NS&I savings products
Product | Previous interest rate (from 15 April 2025) | New interest rate from 3 July 2025 (on general sale) |
---|---|---|
Guaranteed Growth Bonds 2-year (Issue 74) | 4.00% gross/AER | 3.85% gross/AER |
Guaranteed Income Bonds 2-year (Issue 74) | 3.93% gross/4.00% AER | 3.79% gross/3.85% AER |
Guaranteed Growth Bonds 3-year (Issue 76) | 4.10% gross/AER | 3.88% gross/AER |
Guaranteed Income Bonds 3-year (Issue 76) | 4.03% gross/4.10% AER | 3.82% gross/3.88% AER |
Guaranteed Growth Bonds 5-year (Issue 68) | 4.06% gross/AER | 3.84% gross/AER |
Guaranteed Income Bonds 5-year (Issue 68) | 3.99% gross/4.06% AER | 3.78% gross/3.84% AER |
Product | Previous interest rate (from 18 August 2023) | New interest rate from 18 July 2025 |
---|---|---|
Junior ISA | 4.00% AER (tax-free) | 3.55% AER (tax-free) |
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Daniel is a digital journalist at Moneyweek and enjoys writing about personal finance, economics, and politics. He previously worked at The Economist in their Audience team.
Daniel studied History at Emmanuel College, Cambridge and specialised in the history of political thought. In his free time, he likes reading, listening to music, and cooking overambitious meals.
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