MAJOR savings bank NS&I has announced a huge change and it’s good news for millions of customers.
More than 2.7million savers are set to benefit as National Savings & Investments (NS&I) increases interest rates across its product range.
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The changes are coming in from today on various popular saving accounts.
The interest rates paid on both the Direct Saver and Income Bonds have risen from 1.20% to 1.80%.
That means these accounts are now at the highest they have been in over a decade.
The rate on Direct ISA is at its highest level since February 2014 as it has risen to 1.75%, up from 0.90%.
NS&I has also hiked the interest rate it pays on its Junior ISA, from 2.20% to 2.70%, and Investment Account, from 0.01% to 0.40%.
The interest rates paid on Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates will also be increased from December 1.
Although, it’s worth noting that the new rates on those products will only be available to existing customers with maturing investments as they are not currently on sale.
This means customers with savings in NS&I’s variable rate accounts have seen a boost in their savings in the last month.
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The Premium Bonds prize fund rate has also increased from 1.40% to 2.20% for the October draw.
NS&I Chief Executive Ian Ackerley said: “Today’s increases across our variable and fixed-rate products mean that our customers get a welcome boost to their savings.
“The changes to interest rates we’ve announced today will help ensure that our products are priced appropriately when compared to those offered by our competitors.”
How do the NS&I rates compare?
Before you sign up, it’s important to check how it compares to the rest of the market to make sure you get a good deal.
We used MoneyFacts to compare NS&I’s rate for its Direct Saver account to other easy-access accounts on the market today.
Paragon had the highest interest rate of 2.30% for its Triple Access Account.
This was followed by Aldermore’s Double Access Account with 2.15%, and Nationwide’s 1 Year Triple Access Online Saver with 2.10%.
We also compared the Direct ISA interest rate to other easy-access ISAs on the market.
Teachers Building Society’s Teachers for Teachers Easy Access ISA came out on top with 2.15%.
It was closely followed by Skipton BS’s Cash eISA Saver with 2.10% and Teacher’s Cash ISA with the same rate.
The Sun always recommends having a look around for the best deals on interest rates.
Below we’ve put together our best tips.
How to find the best rates
With your current rates in mind, don’t waste time looking at individual banking sites to compare rates – it’ll take you an eternity.
Research websites like MoneyFacts.co.uk and price comparison websites such as Compare the Market, Go Compare and MoneySupermarket will help save you time and show you the best rates available.
These sites let you tailor your searches to an account type that suits you.
Meanwhile, Martin Lewis last week said that while cash ISA rates can now pay up to 4.3%, they’re a waste of time for many.
Martin Lewis said that only those with savings of more than £39,000 should think about opening a cash ISA.
