Millions of savers with National Savings and Investments (NS&I) are being urged to consider moving their money, despite the Treasury-backed provider announcing a series of interest rate increases.
What are the new NS&I rates?
On November 7, 2025, NS&I confirmed it is raising returns on its fixed-term savings accounts by up to 0.31 percentage points. This marks the provider's attempt to offer more competitive returns to its vast customer base of over 24 million people.
The specific changes see the one-year Guaranteed Growth and Income Bonds increase from 4.04% to 4.2%. For savers looking at a two-year term, the rate has been lifted from 3.85% to 4.1%. The three-year bond now pays 4.16%, up from 3.88%.
In the most significant jump, the five-year fixed-rate bond will now offer 4.15%, a substantial increase from its previous rate of 3.84%.
Expert reaction: A step in the right direction?
While any rate rise is welcome news for savers, financial experts have been quick to point out that these new deals still fall short of the best available on the market.
Sarah Coles, head of personal finance at investment firm Hargreaves Lansdown, acknowledged the improvement but cautioned savers. "It's much more tempting than it was – but that's a fairly low bar," she said.
She noted that the NS&I brand and the 100% government guarantee on savings remain powerful draws, especially for those with larger balances who want to avoid managing multiple accounts. However, she delivered a stark warning: "The rises aren't enough to get any of these deals into the top 10 accounts across any period, so they could do better elsewhere."
Why has NS&I increased its rates?
According to Coles, the timing and nature of these increases are likely strategic. "The fact NS&I has taken a step in the opposite direction is highly likely to be driven by a desire to get more money in through the door, to meet its funding targets," she explained.
She added that this period often sees a large number of fixed-rate deals mature, and NS&I will be hoping its "shiny new bond rates" are enough to persuade existing customers to reinvest and attract new ones.
Andrew Westhead, NS&I's retail director, stated: "I'm pleased that we can offer increased interest rates on these fixed-term products, giving savers who want guaranteed returns a choice in how they invest, while continuing to benefit from the security of the 100% government guarantee." He emphasised that the changes aim to balance the interests of savers, taxpayers, and the wider financial services sector.
Despite this reassurance, the core message from financial analysts remains clear: while NS&I offers security, savvy savers should actively compare rates to ensure their money is working as hard as possible.
