National Savings and Investments (NS&I) has registered a major slowdown in savers opening new accounts.
The Government-backed bank pulled in just £172 million in October from interest-earning accounts, latest figures show.
It’s a huge drop from £801 million a month earlier, and less than one-tenth of the £1.8 billion that flowed in during August.
Out of favour: National Savings & Investment pulled in just £172m in October, latest figures show – a huge drop from the £801m the previous month
Money is pouring out of NS&I savings accounts while sales of its Premium Bonds continue to climb. In October, savers put £207 million into Premium Bonds, where balances now stand at £119.3 billion.
Some £35 million came out of its other savings accounts, since rates are poor compared with the offerings from other banks and building societies.
NS&I last increased rates in October and has offered savers nothing more following the latest base-rate rise. Its second-most popular account after Premium Bonds is its easy-access Direct Saver.
Available online or by phone, it pays 1.8 per cent — well below the 2.81 per cent top online easy-access account from Al Rayan.
Kent Reliance’s account, available online or by post, pays 2.47 per cent, while you can get 2.3 per cent with Scottish BS.
NS&I’s Direct Isa pays 1.75 per cent. You can do better with Scottish BS at 2.5 per cent, Kent Reliance at 2.43 per cent, or Skipton at 2.25 per cent.
NS&I Income Bonds pay 1.8 per cent, with interest paid monthly. At Coventry BS online you can earn 2.85 per cent as long as you make no more than six withdrawals each year.
Kent Reliance pays 2.44 per cent on its easy-access account, which you can open online or by post. The NS&I postal Investment Account pays a paltry 0.4 per cent.
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