NS&I has announced that it will be increasing the interest rates on its Direct ISA, Direct Saver and Income Bonds to 0.35% on 29 December 2021.

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.


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)


Notes to Editors

  1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.
  2. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year, the rate quoted and the AER will be the same.
  3. Gross is the taxable rate of interest without the deduction of UK Income Tax.
  4. Tax-free means the interest is exempt from UK Income Tax.
  5. Information on our products can be found here.
  6. For further information please contact the NS&I media team.