Government-backed NS&I's new fixed-rate savings pay up to 4.07% interest – close to topping the tables

As a state-owned savings provider, NS&I can't go bust. Its deals are therefore especially worth considering if you have very large amounts to save, above the £120,000 per person, per institution protection you get with other UK-regulated accounts.

NS&I's new accounts mostly top the 'big name' tables – but can be beaten elsewhere

The new deals from NS&I pay slightly less than they did before the Bank of England's decision to cut the base rate to 3.75% last month – but they're still competitive:

How NS&I's savings fixes work

Here are the key need-to-knows:

• You can deposit from £500 up to £1 million. As with all NS&I savings, every penny you put in is totally safe, as it's backed by the Treasury. This is one of NS&I's main draws – it won't go bust unless the UK Government does. Though, under the savings safety rules, all UK-regulated savings accounts are protected anyway up to £120,000 per person, per institution.

• You can't withdraw your money until the end of your fixed term. Meaning you'll have to wait one, two, three or five years to access your cash depending on which account you choose, so only lock away what you definitely won't need access to. If you're looking for an account that lets you withdraw, see the top easy-access accounts.

• You can choose when and how to have the interest paid – which could have tax implications. The Guaranteed Income Bonds pay interest monthly directly into your linked current account, while the Guaranteed Growth Bonds pay interest annually into the bond itself – meaning you can only access the interest when your bond matures.
  
  This is important if you need to pay tax on savings interest, as it's when you can access your interest that counts for tax purposes. Unlike NS&I's Premium Bonds, where any prizes you win are tax-free, interest you earn from NS&I's savings fixes IS taxable.
  
  Choosing the annual interest option means you'll earn interest on the interest. However, because you can only access it in one lump sum at maturity, it could mean you end up paying more tax (depending on your circumstances). For more on this, see our savings interest examples.

• Despite their 'British Savings Bonds' branding, there's nothing revolutionary about these bonds. NS&I says your savings will be "invested back into supporting the UK" – but, as NS&I itself points out, this is the case for ALL of its account types (including Premium Bonds).
  
  That's because whenever you save with NS&I, you're effectively lending your money to the Government – and the funds raised by the British Savings Bonds aren't being ring-fenced for a specific use.