National Savings and Investments (NS&I) ups interest rates
Thursday, 17 August 2006 12:00
National Savings and Investments (NS&I) is increasing the rate of interest it charges on the majority of its variable-rate savings offers.
Changes to NS&I's variable rate products will come into effect on August 17th 2006, excepting the Direct ISA (3 August 2006) Premium Bonds, Ordinary Account and General Extension Rate. These will see their rates change on September 1st.
The Premium Bond prize fund rate will increase from 2.95% p.a. to 3.15% p.a. tax-free3, equivalent to 5.25% p.a. for a higher rate taxpayer and 3.93% p.a. for a basic rate taxpayer.
Because the Gilt yields have been volatile over the last few weeks and there is evidence to suggest that this will continue, we are not changing rates on our fixed rate products. Once markets have settled down we will review the situation and the scope to change rates on these products.
New variable rates
- Income Bonds (new rates effective from 1 September 2006) -
Under £25,000 - 4.20% (+0.25%)
£25,000+ - 4.45% (+0.25%)
- Investment Account (new rates effective from 17 August 2006)
£50,000+ - 4.05% (+0.25%)
£25,000+ - 3.70% (+0.25%)
£10,000+ - 3.50% (+0.25%)
£5,000+ - 3.30% (+0.25%)
£500+ - 3.20% (+0.25%)
Under £500 - 3.15% (+0.25%)
- Treasurers Account (new rates effective from 17 August 2006)
£100,000+ - 4.15% (+0.25%)
£25,000+ - 3.80% (+0.25%)
£10,000+ - 3.60% (+0.25%)
- Ordinary Account (new rates effective from 1 September 2006)
£500+ - 1.20% (+0.25%)
Under £500 - 1.10% (+0.25%)
Tax-free rates
- General Extension Rate (new rate effective from 1 September 2006) - 2.28% (+0.24%)
- ISA (Cash mini and Tessa accounts. New rate effective from 17 August 2006) - 4.45% (+0.25%)
- Direct ISA (new rate effective from 03 August 2006) - 5.30% (+0.25%)
- Premium Bonds (New rate effective from 1 September 2006) - 3.15% (+0.20%)
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