NS&I cuts interest rates on 8 savings accounts – are they still worth it?
NS&I will now offer less attractive interest rates for customers wishing to lock their savings away to grow for one, two, three or five years.
moneyweek.comHere’s the latest on NS&I bond rate increases (as of May 2026).
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NS&I has been adjusting fixed-term British Savings Bonds in recent months, with some reports describing increases for certain new issues in late 2025 and early 2026, though the level of increases varied by term length and bond type. This reflects NS&I’s response to market funding conditions and savings demand. [cite ][cite ]
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Specific recent movements included higher rates on one-year bonds (growth and income variants) and notable adjustments for two-, three-, and five-year bonds in late 2025, while at times the market saw offers at or near 4% for shorter terms. These changes were presented by NS&I and financial outlets as an effort to remain competitive and attract savers amid evolving gilt yields. [cite ][cite ]
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By early 2026, some outlets noted that NS&I’s new British Savings Bonds were priced with higher initial rates than the previous issues, but several analyses also pointed out that longer-term bonds could still be less favorable than shorter-term options depending on the exact issue and reinvestment choices. [cite ][cite ]
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If you’re considering reinvesting maturing funds, it’s worth comparing the current one-year, two-year, three-year, and five-year offers side-by-side, since rate schedules can differ between new issues and existing, maturing accounts. A few financial news outlets published tables showing the relative changes across terms when NS&I announced new issues. [cite ][cite ]
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For the most precise and up-to-date figures, I recommend checking NS&I’s official “News” page and the latest press releases, along with major UK personal finance outlets that regularly publish the current rate tables for British Savings Bonds. [cite ]
Illustration example
- If you’re deciding between a 1-year vs 5-year NS&I Bond right now, you’d typically compare: (a) the guaranteed rate for 1 year (often around 4.0–4.2% AER in recent cycles) and (b) the longer-term rate for five years (which may be in the low-to-mid 4% range). Remember to account for compounding frequency (monthly vs annual) and whether you value quicker access vs lock-in. [cite ][cite ]
Would you like me to pull a current, London-focused snapshot of the latest NS&I British Savings Bond rates (with a table comparing terms and AERs) and point you to the official NS&I page for exact figures? I can provide a concise, up-to-date comparison if you confirm you want the latest numbers. [cite ]