How do savings account interest rates compare when NSandI raises them?

Although savers can find better offers elsewhere, NS&I has increased account rates in an effort to attract more business

In an effort to attract clients and reach its funding goal, NS&I has raised the interest rates on nine of its savings accounts.

Today, June 23, the Treasury-backed bank raised interest rates on a green savings bond and fixed bonds with terms of one, two, three, and five years.

The increase in fixed bonds coincides with NS&I's efforts to reach its net financing target of 15 billion for the 2026-2027 fiscal year, up from 13 billion in 2025-2026.

The government sets the financing target, which may have an impact on the rates NS&I charges for its accounts. NS&I might increase interest rates if the goal is higher.

Watch the entire video here: In 2026, NS&I increased interest rates on one-, two-, three-, and five-year fixed-rate bonds for the third time.

The head of personal finance at investment platform AJ Bell, Sarah Coles, stated: "NS&I has joined the fiercely competitive savings market at the moment.

"Banks are making every effort to compete, maintaining higher fixed rate agreements and compelling NS&I to raise rates once more in order to draw in the necessary funds."

Which NS&I accounts have higher payments?

The nine accounts listed below now have higher interest rates.

NS&I is credited.

You can save up to £1 million by opening one of the eight Guaranteed Growth or Income bonds with a minimum investment of £500.

Green savings bonds can be opened with a minimum investment of £100 and a maximum holding amount of £100,000.

All nine accounts have set terms, so you can't take money out early or access it until the end of the term.

You can take any money out of the accounts or put it back into a different NS&I account once they mature.

The NS&I website is where you can apply for the accounts.

What is the difference between NS&I's savings accounts and those available on the market?

Although savers should be happy about the rate increase, there are marginally better options if you want the best rate.

Smaller providers offer better prices, but the Financial Services Compensation Scheme (FSCS) protects them.

Both StreamBank and Afin Bank offer their customers interest rates of 4.81 percent and 4.8 percent, respectively, on their one-year bond.

Market Harborough Building Society is offering a two-year bond with an interest rate of 4.86 percent, while Afin Bank is offering a two-year bond with an interest rate of 4.85 percent.

Additionally, this bank offers a three-year fixed bond that pays 4.82 percent in interest, while Afin Bank offers the most competitive rate on three-year fixed-rate bonds (4.85 percent).

Atom Bank has a five-year fixed bond that pays 4.85 percent interest, while Afin Bank's five-year fixed-term bond pays 4.9 percent.

According to Moneyfacts, NS&Is Green Savings Bond has risen to the joint-second-best green savings account on the market, only surpassed by Castle Trust Bank's three-year e-Saver account that pays 4.54 percent interest.

The substantial increase in the Green Savings Bond rate, according to Coles, indicated that "the previous policy of hoping green-conscious savers would be happier to overlook a much lower rate for the bonds just wasn't working in attracting the cash" NS&I desired.