Interest rates

Premium Bonds prize fund rate

Until the December 2024 prize draw
Odds per £1 Bond number Annual prize fund rate Tax information
22,000 to 1 4.15% variable
 All prizes are tax-free
From the January 2025 prize draw
Odds per £1 Bond number Annual prize fund rate Tax information
22,000 to 1 4.00% variable
 All prizes are tax-free

The rate and the odds are variable.

 

Variable rates

Direct ISA

Amount Interest rate Tax information
£1+ 3.00% tax-free/AER, variable Tax-free
 

Direct Saver

Until 19 December 2024
Amount Interest rate Tax information
£1+ 3.75% gross/AER, variable Taxable, paid gross
From 20 December 2024
Amount Interest rate Tax information
£1+ 3.50% gross/AER, variable Taxable, paid gross
 

Income Bonds

Until 19 December 2024
Amount Interest rate Tax information
£500+ 3.69% gross/3.75% AER, variable Taxable, paid gross
From 20 December 2024
Amount Interest rate Tax information
£500+ 3.44% gross/3.49% AER, variable Taxable, paid gross

We round each month’s interest up or down to the nearest penny.

 

Investment Account

Amount Interest rate Tax information
£1+ 1.00% gross/AER, variable Taxable, paid gross

Junior ISA

Amount Interest rate Tax information
£1+ 4.00% tax-free/AER, variable Tax-free
 

Fixed-term rates

Guaranteed Growth Bonds (British Savings Bonds)

2-year fixed rate

Amount Interest rate Tax information
£500+ Issue 72: 3.60% gross/AER, fixed for 2 years Taxable, paid gross

3-year fixed rate

Amount Interest rate Tax information
£500+ Issue 74: 3.50% gross/AER, fixed for 3 years Taxable, paid gross
 

Guaranteed Income Bonds (British Savings Bonds)

2-year fixed rate

Amount Interest rate Tax information
£500+ Issue 72: 3.54% gross/3.60% AER, fixed for 2 years Taxable, paid gross

3-year fixed rate

Amount Interest rate Tax information
£500+ Issue 74: 3.44% gross/3.49% AER, fixed for 3 years Taxable, paid gross
 

Green Savings Bonds

Amount Interest rate Tax information
£100+ Issue 7: 2.95% gross/AER, fixed for 3 years Taxable, paid gross
 

Renewal rates for maturing fixed term investments

If you have one of our fixed term investments that is about to mature, we’ll contact you around a month before the maturity date to let you know your options and the current renewal rates.

If you choose to renew your investment for another term of the same length, you’ll receive the rate we quote in your letter, even if our rates go down before your maturity date. If you renew for a different term, you’ll receive the rate on offer on the date your investment matures. Bear in mind that this could be higher or lower than the rate in the summary box we send you.

Historical interest rates

We are committed to keeping you informed and up to date on changes in the interest rates for our variable rate accounts and investments over at least the previous 12 months. We have also included the interest rates for our fixed term investments.

Historical interest rates

Residual Account

If we close one of our Bonds or Accounts and can't trace you to return your money, we will transfer your money to our Residual Account.

View the terms and conditions

Type Holdings Interest rate Tax information
A - interest bearing for £1+ Children’s Bonds
Matured 6-month and 18-month terms of Guaranteed Growth Bonds and Guaranteed Income Bonds
Easy Access Savings Account
Ordinary Account
Deposit Bonds
Yearly Plan
SAYE
Treasurer's Account
Pensioners Guaranteed Income Bonds
Capital Bonds		 0.25% gross/AER, variable Taxable, paid gross
B - non-interest bearing Gift Tokens
Savings Stamps
British Savings Bonds (1968)		 0%

Definitions

Tax-free AER Gross
means that interest or prizes are exempt from UK Income Tax and Capital Gains Tax. (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same. is the taxable rate of interest without the deduction of UK Income Tax.