NS&I makes market-leading fixed rate increases

Its one year fixed rate bond now offers 6.20% AER, the best rate on the market.  

The Government-backed National Savings & Investments (NS&I) made several rate increases to its Guaranteed Growth Bond range today.

These are fixed rate bonds, and its one year fixed savings account now offers a market-leading 6.20% AER. In comparison, the next best rate on the market comes from Habib Bank Zurich at 6.03% AER.

Andrew Griffith, Economic Secretary to the Treasury, said that the Guaranteed Growth Bonds now offer the highest returns since the range was launched.

“It’s vital that savers are able to benefit from recent interest rate rises, so I’m delighted that NS&I is releasing new Issues of Guaranteed Growth Bonds and Guaranteed Investment Bonds at over 6%,” he said.

In addition to its one year fixed rate savings account, the NS&I upped the return on its five year fixed deal to 5.5% AER.

Unlike its one year counterpart, there are better rates in this sector. Recognise Bank currently tops the charts at 5.75% AER, with an offer that pays its interest monthly or on anniversary.

This means it can accommodate those who wish to use their savings to support their regular income and those who want to benefit from compound interest.

RCI Bank UK and the Bank of London and The Middle East (BLME) also offer rates of 5.65% AER and 5.60% AER respectively.

While deposits with the NS&I aren’t protected under the Financial Services Compensation Scheme (FSCS), they are 100% backed by HM Treasury.

This could provide an additional level of cover for some savers, especially since the FSCS only protects savings up to £85,000 per provider.

Meanwhile, the Guaranteed Growth Bonds accept deposits between £500 and £1 million per person.

The NS&I also made increases to its two and three year fixed rate bonds today.

These can all be compared in more detail on our charts, which rank the best rates across the savings market.

In addition to interest, users can also compare fixed terms and internet banking facilities, among other options.