NS&I has issued new one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds today, for the first time since 2019.

They will pay 4.00% gross/AER and 3.90% gross/3.97% AER respectively.

The rates are the highest since 2010, when they were respectively 3.20% and 3.15% gross/3.20% AER.

The minimum investment will be £500 and there’s a maximum of £1m for each issue. After one year, savers will be able to withdraw their cash or reinvest.

NS&I chief executive Ian Ackerley, said: “It’s continuing to be an exciting time for savers and I’m pleased that we are able to bring back on general sale our popular one-year fixed-rate bonds with two new issues.

"Existing customers may also gain from a better deal when their current bonds mature, with the option to renew with a higher interest rate."

Interest rates have been increased on Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates.

Around 494,000 one, two, three or five-year Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates accounts could benefit from the new interest rates when the Bonds and Certificates mature, if they choose to reinvest at maturity.

The two, three and five-year products are only available to existing customers with maturing products and are not open to new customers.

NS&I said it has continued to respond to the current market to ensure that its products are priced appropriately when compared with the rest of the savings market. That also ensures that NS&I continues to balance the interests of savers, taxpayers and the broader financial services sector.

Mr Ackerley said: "By offering two new Issues today, we are continuing to balance the interests of savers, taxpayers and the broader financial services sector to support our Net Financing target which contributes to the funding of public services.”

Fixed-term savings products (on sale from 1 February 2023)

Fixed-term savings products (not on sale but available to customers with maturing products)