NS&I increases interest rates
More than 2.7 million savers are set to benefit as NS&I increases interest rates across its product range, with changes across its variable products effective from today (25 October 2022).
The interest rate paid on Direct Saver and Income Bonds is now at the highest it has been in over a decade, with the rate on Direct ISA now at its highest level since February 2014.
NS&I has also increased the interest rate it pays on its Junior ISA and Investment Account.
The interest rates paid on Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates will also be increased from 1 December 2022. The new rates on these products will only be available to existing customers with maturing investments as they are not currently on sale.
This means that all customers with savings in NS&I’s variable accounts have seen a boost to their savings within the last month, with the Premium Bonds prize fund rate having increased from 1.40% to 2.20% for the October draw.
The changes will ensure that NS&I’s products are priced appropriately when compared with the rest of the savings market. They also ensure that NS&I continues to balance the interests of savers, taxpayers and the broader financial services sector.
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 come in the same month that we increased the Premium Bonds prize fund rate. Some of the rates we’re now paying – including on Premium Bonds – are the highest that they have been in over a decade, which is great news for savers.
“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.”
Variable rate savings products
|
Product |
Previous interest rate |
Interest rate from today (25 October 2022) |
|
Direct Saver |
1.20% gross/AER |
1.80% gross/AER (+60 basis points) |
|
Income Bonds |
1.20% gross/1.21% AER |
1.80% gross/1.81% AER (+60 basis points) |
|
Direct ISA |
0.90% gross/AER |
1.75% tax-free/AER (+85 basis points) |
|
Junior ISA |
2.20% gross/AER |
2.70% tax-free/AER (+50 basis points) |
|
Investment Account |
0.01% gross/AER |
0.40% gross/AER (+39 basis points) |
Fixed term savings products (currently not on sale)
|
Product |
Current rate |
Interest rate from 1 December 2022 (change in brackets) |
|
Guaranteed Growth Bonds (1-year) |
1.85% gross/AER |
3.60% gross/AER (+175 basis points) |
|
Guaranteed Growth Bonds (2-year) |
2.25% gross/AER |
3.65% gross/AER (+140 basis points) |
|
Guaranteed Growth Bonds (3-year) |
2.55% gross/AER |
3.70% gross/AER (+115 basis points) |
|
Guaranteed Growth Bonds (5-year) |
2.55% gross/AER |
3.80% gross/AER (+125 basis points) |
|
Guaranteed Income Bonds (1-year) |
1.80% gross / 1.81% AER |
3.50% gross / 3.56% AER (+170 basis points) |
|
Guaranteed Income Bonds (2-year) |
2.20% gross / 2.22% AER |
3.55% gross / 3.61% AER (+135 basis points) |
|
Guaranteed Income Bonds (3-year) |
2.50% gross / 2.53% AER |
3.60% gross / 3.66% AER (+110 basis points) |
|
Guaranteed Income Bonds (5-year) |
2.50% gross / 2.53% AER |
3.70% gross / 3.76% AER (+120 basis points) |
|
Fixed Interest Savings Certificates (2-year) |
2.15% tax-free/AER |
3.40% tax-free/AER (+125 basis points) |
|
Fixed Interest Savings Certificates (5-year) |
2.45% tax-free/AER |
3.55% tax-free/AER (+110 basis points) |
Notes to Editors
- 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.
- NS&I announced on 27 September 2022 that the Premium Bonds prize fund rate would increase from 1.40% to 2.20%, with the odds changing from 24,500 to 1 to 24,000 to 1. The changes were effective from the October 2022 prize draw and more information can be found here.
- 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.
- Tax-free means the interest is exempt from UK Income Tax and Capital Gains Tax.
- Information on NS&I’s on sale products can be found here.
- Information on NS&I’s off sale products can be found here.
- For further information please contact the NS&I media team.