NS&I increases interest rates on direct ISA, direct saver and income bonds

New junior ISA from NS&I

NS&I has announced today that it will be increasing the interest rates on its Direct ISA, Direct Saver and Income Bonds to 0.35% on 29 December 2021 following last week’s Bank of England base rate rise.

The interest rate on Direct Saver and Income Bonds will be increased by 20 basis points, from 0.15% gross/AER to 0.35% gross/AER. The interest rate on Direct ISA will be increased by 25 basis points, from 0.10% tax-free/AER to 0.35% tax-free/AER.

NS&I’s Net Financing target for 2021-22 is £6 billion, in a range of £3 billion to £9 billion. In October this year, NS&I published its year-to-date total Net Financing performance of £0.6 billion. The decision to increase the interest rates on these products is in order to help NS&I meet its annual Net Financing target.


Product Current interest rate Interest rate from 29 December 2021 (change in brackets)


Direct ISA 0.10% tax-free/AER 0.35% tax-free/AER (+25 basis points)
Direct Saver 0.15% gross/AER


0.35% gross/AER (+20 basis points)
Income Bonds 0.15% gross/AER


0.35% gross/AER (+20 basis points)


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