NS&I boosts savings rates

New rates for NS&I savings bonds

National Savings & Investments (NS&I) has increased the interest rates on offer through its Guaranteed Growth and Income Bonds.
New savings certificates unveiled by NS&I

National Savings & Investments (NS&I) has launched new three and five-year issues of its index-linked savings certificates.

Wednesday, 19 August 2009 12:00

National Savings and Investments (NS&I) is hiking rates on a range of its savings products by up to 1.2 per cent.

The Fixed Interest Savings Certificates, Children's Bonus Bonds and Direct ISA are the products being affected by the revised rates.

It means customers taking out at two-year fixed interest savings certificate will receive 1.25 per cent interest, an increase of 0.30 per cent.

And the five-year version will now pay 2.25 per cent interest following a 0.35 per cent increase.

An increase of 0.20 per cent has been applied to the children's bonus bonds, which now pay 2.5 per cent interest.

The 1.2 per cent per cent rise w ill affect the Direct ISA which will now pay 2.5 per cent interest.

A spokesperson for NS&I said: "NS&I has made this decision as it continues to follow a pricing strategy designed to balance the interests of its savers, the taxpayer and the stability of the financial services market."