NS&I explains how thousands of customers can get access to a new exclusive interest rate

NS&I is offering existing bondholders access to a new one-year Guaranteed Growth Bond paying 5.15 per cent or a Guaranteed Income Bond at 5.03 per cent.

These interest rates are available to those with maturing bonds and will become available when their current ones mature.

NS&I launched the original one-year version of its Guaranteed Growth Bonds and Guaranteed Income Bonds last August. Savers benefitted from a table-topping interest rate of 6.2 per cent.

This was the highest one-year rate on the market at the time.

An NS&I spokesperson told GB News: “Issue 79 of the one-year fixed-rate British Savings Bonds were withdrawn from general sale at close of business on Wednesday, 24 July 2024. The three-year fixed-rate British Savings Bonds remain on general sale.

“Customers with maturing Guaranteed Growth Bonds and Guaranteed Income Bonds can either withdraw their money or choose to reinvest into a 1-year bond with the new rate of 5.15 per cent, or a two, three or five-year fixed term Bond.”

Its 6.2 per cent Guaranteed Growth & Guaranteed Income Bonds proved massively successful with savers.

However earlier this week there were warnings that NS&I could be “heavy-handed with cuts” to rates in the months ahead.

This comes after the financial institution overshot its target for net financing to the Government during the 2023/24 tax year due to customers not withdrawing cash quickly enough.

Based on its annual reports, NS&I confirmed it delivered £11.3billion in net financing over the period which is higher than the proposed target for the year.

The state-owned savings bank's initial target was £7.5billion, plus or minus £3billion.

According to NS&I, it had been on track to reach its net financing target in December 2023.

However, repayments between January and March 2024 “did not materialise to the levels anticipated.”.

Unlike traditional savings products, NS&I offer Premium Bonds as another savings option, but these do not have a regular interest rate attached to them.

Instead, each month savers are able to win cash prizes of up to £1million, as well as other sums including £100,000, £50,000 and £10,000.

This month's Premium Bonds prize draw saw more than 5.8 million prizes up for grabs.

There are always two £1million jackpot winners and the current winners are from Outer London and Devon.

Premium Bonds holders can easily check if they've won a prize in the August draw from Friday, August 2, by checking the NS&I website, the prize checker app, or simply asking Alexa to check on the NS&I website.

Customers will need their Premium Bonds holder’s number. If they use the prize checker app, they'll need their NS&I or holder’s number. People can also check for any unclaimed prizes owed to them.