You are here: Home - Saving & Banking - News -

NS&I ups rates on variable savings products

Written by: Paloma Kubiak
NS&I has announced it will increase the rates on three savings products in October.

The government’s savings arm announced that from 1 October 2018, it would increase the rates on three variable savings products by between five and 15 basis points.

Here’s what’s changing:

  • Income bonds: from 1.00% gross/AER to 1.15% gross/1.16% AER
  • Investment account: from 0.70% gross/AER to 0.80% gross/AER
  • Direct saver: from 0.95% gross/AER to 1% gross/AER.

The move helps to offset its previous disappointing decisions to cut the £1m deposit limit on bonds and announcement that it will cut the rate on its easy access ISA from 1% to 0.75% from 24 September 2018.

Ian Ackerley, chief executive, NS&I, said: “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.”

NS&I added that since the Bank of England base rate changes in November 2017 and August 2018, it has increased the interest rate on Income Bonds by 40 basis points, Investment Account by 35 basis points and on Direct Saver by 30 basis points. view

While savers can get more interest on their cash by opening variable savings elsewhere, such as 1.40% with the Coventry Building Society’s easy access account, one of the big draws of NS&I for millions of savers is that amounts deposited are backed by HM Treasury. Money is therefore 100% capital protected.

Ordinarily, banks come under the Financial Services Compensation Scheme (FSCS) meaning a maximum of £85,000 is returned to savers if the bank goes bust.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
energy supplier
Controversial SSE/Npower merger on way to being approved

The proposed merger between energy giants SSE and Npower has been provisionally cleared to go ahead after an inquiry found...