National Savings & Investment increase interest rates

National Savings & Investment (NS&I) has increased the interest available on its variable rate savings products in light of recent base rate hikes.

The state-owned investment company claims that returns on its products have strengthened recently thanks to increases in the gilts markets, while from May 23rd 2007 interest rates for income bonds and easy access savings accounts will change.

Furthermore, for NS&I’s premium bonds, rates will grow by 0.2 per cent, up to 3.8 per cent in total – although the company notes that a special rate of 3.95 per cent is available for its special premium bond prize draw.

The odds of winning a prize will remain at 24,000-one, meaning that someone with £30,000 worth of bonds could expect to win prizes at least a few times a year.

Also, thanks to the alterations of interest rate, new issues of the children’s bonus bond and fixed interest savings certificate will also become available.

Earlier this month, NS&I announced that the interest rate for its direct Isa product will increase to 6.05 per cent, up from 5.8 per cent.

© Adfero Ltd

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