NS&I increases interest rates

by | Jul 21, 2022

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NS&I

More than 1.3 million people will see a boost to their savings as NS&I increases the interest rate on many of its products.

The interest rate paid on Direct Saver, Income Bonds, Direct ISA and Junior ISA, will increase from today (21 July 2022).

The interest rate paid on Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates will also be increasing, effective from 1 August 2022. These products are not currently on sale and the new interest rates are only available to customers with maturing investments.

This follows the recent increase in the Premium Bonds prize fund rate, which improved the odds of winning from 34,500 to 1 to 24,500 to 1 and saw an additional 1.4 million prizes paid out in the June 2022 prize draw.

The changes will ensure that NS&I’s products are priced appropriately when compared with the rest of the savings market. It also ensures that NS&I continues to balance the interests of savers, taxpayers and the broader financial services sector.

NS&I Chief Executive, Ian Ackerley, said: “NS&I is one of the largest savings organisations in the UK and we’re pleased to increase our interest rates, helping to ensure that more than 1.3 million savers across the country will see their savings nest eggs boosted.

“Increasing our interest rates means that our products are priced appropriately when compared with the interest rates offered by our competitors.”

 

Variable rate savings products

Product Previous interest rate Interest rate from today (21 July 2022)

 

Direct Saver 0.50% gross/AER

 

1.20% gross/AER (+70 basis points)
Income Bonds 0.50% gross/AER

 

1.20% gross/1.21% AER (+70 basis points)
Direct ISA

 

0.35% gross/AER

 

0.90% gross/AER (+55 basis points)
Junior ISA

 

1.50% gross/AER

 

2.20% gross/AER (+70 basis points)

 

Fixed term savings products (currently not on sale)

Product Current rate Interest rate from 1 August 2022 (change in brackets)
Guaranteed Growth Bonds

(1-year)

 

0.10% gross/AER 1.85% gross/AER (+175 basis points)
Guaranteed Growth Bonds

(2-year)

 

0.15% gross/AER 2.25% gross/AER (+210 basis points)
Guaranteed Growth Bonds

(3-year)

 

0.40% gross/AER 2.55% gross/AER (+215 basis points)
Guaranteed Growth Bonds

(5-year)

 

0.55% gross/AER 2.55% gross/AER (+200 basis points)
Guaranteed Income Bonds

(1-year)

 

0.06% gross / 0.06% AER 1.80% gross / 1.81% AER (+174 basis points)
Guaranteed Income Bonds

(2-year)

 

0.11% gross / 0.11% AER 2.20% gross / 2.22% AER (+209 basis points)
Guaranteed Income Bonds

(3-year)

 

0.36% gross / 0.36% AER 2.50% gross / 2.53% AER (+214 basis points)
Guaranteed Income Bonds

(5-year)

 

0.51% gross / 0.51% AER 2.50% gross / 2.53% AER (+199 basis points)
Fixed Interest Savings Certificates

(2-year)

 

1.30% tax-free/AER 2.15% tax-free/AER (+85 basis points)
Fixed Interest Savings Certificates

(5-year)

 

1.90% tax-free/AER 2.45% tax-free/AER (+55 basis points)

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