NS&I launches new British Savings Bonds – but how do they fare?

It comes as more than 30 providers have already lowered rates since last month’s base rate reduction.

New issues of the British Savings Bonds from Government-backed brand, National Savings & Investments (NS&I), went on sale today. However, savers may be left wondering whether these accounts are still worth considering upon learning that they offer lower rates than their predecessors.

^{Source: National Savings & Investments}

“The latest cuts from NS&I will no doubt leave many savers disheartened,” recognised Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, but added that they are hardly surprising given over 30 providers have already lowered rates since last month’s Bank of England base rate reduction.

“NS&I’s pricing is also based on net financing, which considers total deposits, outflows and Premium Bond prize draw repayments, so the changes will also help [to reach its] £13 billion goal,” Eastell added.

Are NS&I’s British Savings Bonds a good option?

Despite paying lower rates, the new issues of NS&I’s British Savings Bonds could still earn savers a real return on their money as they continue to beat inflation (which eased to 3.2% in November 2025). But, keep in mind higher rates can be found elsewhere.

Union Bank of India (UK) Ltd, for instance, leads our one-year bond chart with its Union Premier Bond and Fixed Rate Deposits paying 4.33% AER. Meanwhile, Chetwood Bank’s 2 Year Fixed Rate Savings Account sits at the top of our two-year bond chart and offers 4.16% AER.

Those who’d prefer to secure a fixed rate for slightly longer could also consider UBL UK’s Raisin UK – 3 Year Fixed Term Deposit (accessible via the Raisin UK savings platform) or its 3 Year Fixed Term Deposit which is available directly from the provider. Both accounts pay 4.21% AER. Alternatively, Hampshire Trust Bank’s 5 Year Online Fixed Saver (Issue 44) offers the best five-year fixed rate, at 4.31% AER.

Nevertheless, Eastell said that NS&I’s British Savings Bonds may appeal due to the unique, 100% protection afforded to funds in these accounts by HM Treasury, meaning “savers [who] have larger balances that would normally exceed the FSCS limit can rest easy”. The Financial Services Compensation Scheme (FSCS) was recently increased to cover deposits of up to £120,000.