Tiny boost for savers as NS&I raises its rates on three accounts – but by less than the 0.25 point base rate rise
NS$I is short-changing savers by passing on less than the 0.25 point rise in the base rate
National Savings & Investments is raising its rates on three accounts.
But it is short-changing savers by passing on less than the 0.25 point rise in the base rate to 0.75 per cent.
On October 1, its Direct Saver will rise from 0.95 per cent to 1 per cent; its Income Bond rate will rise to 1.15 per cent, from 1 per cent; and the Investment Account will increase to 0.8 per cent from 0.7 per cent.
But savers in its easy-access Direct Isa will see a drop from 1 per cent to 0.75 per cent on September 24 — the same rate earned last October, when base rate was 0.25 per cent.
The rate paid in prizes for Premium Bond holders out of the £75.5 billion pot remains at 1.4 per cent.
NS&I’s chief executive Ian Ackerley says: ‘We have a duty to balance the interests of savers, the taxpayer and broader market stability.’