Martin Lewis discusses Premium Bonds
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As the cost of living crisis continues, Britons are urged to shop around to make sure they are getting the best deals possible that are available to them. NS&I has increased the interest rates on a range of its products in the last couple of months.
More than 2.7 million savers are set to benefit from the savings provider’s changes.
The new rates on these products will only be available to existing customers with maturing investments as they are not currently on sale.
NS&I has increased the interest rate on its five-year Guaranteed Income Bonds.
The Guaranteed Income Bonds will offer a savings rate of up to 3.80 percent.
The amount of interest provided depends on the fixed-term agreement each individual signs up for.
Fixed-term savings products increase available from December 1 include:
- Guaranteed Growth Bonds (one year) is currently 1.85 percent gross/AER and will increase to 3.60 percent gross/AER (+175 basis points)
- Guaranteed Growth Bonds ( two year) is currently 2.25 percent gross/AER and will increase to 3.65 percent gross/AER (+140 basis points)
- Guaranteed Growth Bonds (three year) is currently 2.55 percent gross/AER and will increase to 3.70 percent gross/AER (+115 basis points)
- Guaranteed Growth Bonds (five year) is currently 2.55 percent gross/AER and will increase to 3.80 percent gross/AER (+125 basis points)
The range of Guaranteed Income Bonds and Fixed Interest Savings Certificates are also set to increase, giving savers up to 3.70 percent from December 1.
For more information, people can visit the NS&I website.
The rate on the Direct ISA is now at its highest level since February 2014.
It is paying an interest rate of 1.75 percent gross/AER variable whereas the Direct Saver is paying 1.80 percent gross/AER.
The interest rate paid on Direct Saver and Income Bonds is now at the highest it has been in over a decade.
Savers can also benefit from a rise in the Junior ISA and Investment Account.
The Junior ISA is paying 2.70 percent and the Investment Account is currently offering savers 0.40 percent.
Their Green Savings Bonds pays three percent interest.
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.”
He continued: “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.”
In September of this year, NS&I increased the prize fund rate for Premium Bonds from 1.40 percent to 2.20 percent.
As a result, the chances of someone winning a cash prize have also improved from 24,500 to one to 24,000 to one.
Savers are urged to shop around to find the best deals for them.
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