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After cutting rates on most of its British Savings Bonds (Guaranteed Growth Bonds and Guaranteed Income Bonds) three weeks ago, NS&I has increased rates on the one-year version of the bond.
NS&I has announced an immediate increase to the interest rates for the one year term of British Savings Bonds (aka Guaranteed Growth Bonds and Guaranteed Income Bonds):
Product | Term | Old Rate | New Rate from 24/7 |
Guaranteed Growth Bonds |
| ||
| 1 year | 4.05% gross/AER | 4.18% gross/AER |
Guaranteed Income Bonds |
| ||
| 1 year | 3.98% gross/4.05% AER | 4.11% gross/4.18% AER |
Before NS&I’s announcement the best one year fixed rate in the market according to Moneyfacts was 4.53% AER and 4v.33% monthly (also 4.53% AER).
The nearest equivalent gilts are Treasury 1.50% 2027 (TG26 maturing 22/07/2026), and Treasury 0.375% 2026 (T26A maturing 22/10/2026) which have net redemption yield as follows:
Tax Rate | 0% | 20% | 40% | 45% | ||||
Gilt | TG26 | T26A | TG26 | T26A | TG26 | T26A | TG26 | T26A |
Net Redemption Yield | 3.80% | 3.62% | 3.49% | 3.55% | 3.19% | 3.47% | 3.11% | 3.62% |
Gross Equivalent | 3.80% | 3.62% | 4.36% | 4.44% | 5.32% | 5.78% | 5.65% | 6.27% |
Source: Techlink Professional
Essential Wealth Management
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Essential Wealth Management is a trading name of Essential Wealth Management and Advice Ltd which is an appointed representative of 2plan wealth management Ltd which is authorised and regulated by the Financial Conduct Authority. Essential Wealth Management and Advice Ltd is entered on the FCA register (www.FCA.org.uk) under no. 518528. Registered office: 1-2 Great Farm Barns, West Woodhay,Newbury, Berkshire RG20 0BP. Registered in England and Wales Number: 04020006.
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Approved by 2plan wealth management Ltd on 20/05/2025
