Savers who are considering depositing money with National Savings and Investments (NS&I) will be pleased to hear that the savings bank has raised interest rates on three accounts.
The rate offered by the NS&I Direct Saver has increased from 0.95% to 1%, while the NS&I Investment account has risen from 0.7% to 0.8%. The biggest increase comes from its Income bonds - from 1% to 1.16%.
Ian Ackerley, chief executive of NS&I, says: “We are pleased to be able to increase the interest rates on our three savings account products.
“NS&I’s operating framework means we have a duty to balance the interests of our savers, the taxpayer and broader market stability when setting our interest rates.”
How these rates compare
NS&I products are generally very popular, but at the moment do not come close to savings accounts that are leading the market.
The current best buy for an easy access saver is the Coventry Building Society Limited Access Saver. This offers a rate of 1.4%, which is 0.4% higher than NS&I. This account offers annual or monthly interest payments which means it also beats the NS&I Income Bond, which is designed to offer savers a monthly return. However, it is important to note that this account offers limited access – this means you can only make three withdrawals per year before the building society cuts the rate.
An alternative that pays monthly, and has no limits on withdrawals, is the BM Savings Internet Saver. This has no limits on withdrawals and pays 1.35%. However, this rate is a 12-month bonus that expires and drops after the initial period.
Rates on easy-access accounts that come with a bonus or withdrawal restrictions have edged up since the Bank of England raised interest rates from 0.5% to 0.75% in early August.
Hi Iain, as I said in my reply to your other comment, the 1.45% rate from BM Savings is not currently available to new savers which is why we don't mention it.
These articles are for the purpose of savers looking for a new rate. At the time of writing, these will always be the best rates on offer on the market for people looking for a new savings account.