NS&I announces interest rates to rise on three savings products – full list of changes

Martin Lewis offers advice on reinvesting in NS&I bonds

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Interest for the Direct Saver, Income Bonds and Direct ISA accounts with NS&I will all be increased to 0.35 percent. Savers will see their interest increase from December 29, 2021.

The Direct Saver and Income Bonds accounts will be increased by 20 basis points, going from 0.15 percent to 0.35 percent. 

The Direct ISA accounts will be increased by 25 basis points, from 0.10 percent tax-free interest to 0.35 percent tax-free interest.

The increase will be implemented in order to help NS&I meet its annual Net Financing target.

For the financial year from 2021 to 2022, NS&I had a Net Financing target of £6billion, however, in October they published their year-to-date total Net Financing performance which fell incredibly short with £0.6billion.

These increases follow swiftly behind those announced a month ago. 

In November, Income Bonds saw an interest rate rise of 14 basis points, going from 0.01 percent to 0.15 percent.

Many criticised this rate rise when it occurred as it still was not enough to keep NS&I competitive in the current market. 

At the moment, savings accounts from the likes of Cambridge Building Society are offering five percent interest. 

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