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'As my one-year British Savings Bond with NS&I reaches maturity, I need guidance on where to invest my savings.'

Multiple savers are nearing the maturity of their fixed-rate savings accounts next month. Here's an examination of whether holding onto NS&I is a better option or switching to a competitive savings provider is advisable.

, and Administrator

2025 September 8 . 7:24 AM

2 min read

Your one-year NS&I British Savings Bond has reached maturity – what options are available for... — Your one-year NS&I British Savings Bond has reached maturity – what options are available for investing your savings?

'As my one-year British Savings Bond with NS&I reaches maturity, I need guidance on where to invest my savings.'

In the realm of savings accounts, numerous providers are offering competitive rates that surpass those of the National Savings and Investments (NS&I) bonds. Here's a breakdown of some of the top-performing accounts and what they have to offer.

Easy-access savings accounts like those offered by Chase (4.75%) and Revolut (4.5%) are currently leading the pack. However, it's important to note that these accounts come with various limitations and rates can change at any time.

For those seeking a tax-free savings option, the top one-year fixed cash ISAs, such as Vida Savings (4.31%) and Shawbrook Bank (4.31%), may be more appealing. These accounts offer a better rate than the NS&I bond, but remember that there is a £20,000 ISA limit per tax year.

When it comes to fixed-term savings accounts, any of the top 10 one-, two-, three-, and four-year options are currently paying more than the NS&I bond. Tandem Bank offers a 4.37% rate for one-year savings bonds, while JN Bank boasts the best four-year (4.35%), three-year (4.45%), and two-year (4.41%) rates on the market right now.

The growth bond currently pays 4.18%, while the monthly income option pays 4.11% gross / 4.18% AER. JN Bank also holds the title for the highest five-year rate seen for months, with a current payout of 4.52%.

It's worth mentioning that the bank offering the highest five-year fixed-term deposit varies frequently, so checking updated comparison platforms or bank websites is recommended for the latest rates.

NS&I's one-year bond is backed by the government, offering an extra security guaranteeing 100% of the cash. However, the British Savings Bonds now pay a lower rate of 4.18%, a significant drop from the previous 4.75% AER.

The Financial Services Compensation Scheme (FSCS) guarantees savings of up to £85,000 per person, per banking licence, but NS&I does not rely on it. More than 225,000 customers bought NS&I's one-year Guaranteed Growth and Guaranteed Income bonds in 2023, but with other providers offering competitive rates, it seems that many savers are looking for alternatives.

As NS&I's British Savings Bonds are maturing over the coming weeks, now might be the perfect time for savers to explore their options and find the best savings account to suit their needs. The top-paying one-year account could earn £2,195 in interest before tax, compared to £2,090 with NS&I's one-year bond, resulting in a notable difference of £105 over the year.

In conclusion, while NS&I has been a trusted name in savings for many, the current market offers a wealth of competitive alternatives. It's essential for savers to do their research and find the account that best suits their financial goals and risk tolerance.