NS&I announces interest rate rise – one year after rates were slashed | Personal Finance | Finance


NS&I said the change aligns the interest rate for Income Bonds with the interest rate for NS&I’s Direct Saver account.

The Government-backed savings provider said the decision for the increase is in line with NS&I’s operating framework to balance the interests of savers, taxpayers and the broader financial services sector.

However, some have pointed out this new rate is a far cry from the most competitive easy access accounts right now, which currently offer 0.67 percent.

Sarah Coles, senior personal finance analyst, Hargreaves Lansdown, said: “NS&I Income Bonds left a nasty taste in the mouth for an awful lot of savers last year.

“They went from offering the best rate by a country mile, to being among the worst.

“Now the rate has been boosted a little, but for a typical saver, it’s not enough to make them flavour of the month again.”

Ms Coles added: “At 0.15 percent it’s still way below the most competitive easy access account, offering 0.67 percent, so it is relying on the things that make NS&I special to draw the extra cash in.

READ MORE: Britons get less than £100 a week as state pension triple lock may be ‘scrapped for good’

Source link


Please enter your comment!
Please enter your name here