NS&I slashes rate on British Savings Bonds – are they worth it?

The latest announcement from NS&I follows hot on the heels of a reduction to the Premium Bond prize rate

Piggy bank on Union Jack flag, signifying NS&I's British Savings Bonds
(Image credit: Solidcolours via Getty Images)

National Savings & Investments (NS&I) has launched new issues of its two and three-year British Savings Bonds, on sale from today. However, the rates are around 50 basis points lower than its previous offering.

Even before these cuts, the bonds did not feature in MoneyWeek’s round-up of the best savings products, but the gap between the top fixed-rate bonds and NS&I’s offering has now widened further.

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Cuts to NS&I British Savings Bonds
BondOld rate (AER)New rate (AER)
Guaranteed Growth Bonds (2-year) 4.1%3.6%
Guaranteed Income Bonds (2-year) 4.09%3.6%
Guaranteed Growth Bonds (3-year) 4%3.5%
Guaranteed Income Bonds (3-year) 4%3.49%
Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.