National Savings and Investments (NS&I) has revealed that it has increased interest rates on a number of its savings accounts . Leading the way is NS&I's tax free ISA, which now pays 2.5 per cent interest - an increase of 1.2 per cent. The institution has also upped rates on its fixed interest savings certificates, with rates on both the two- and five-year savings accounts increased by 0.3 per cent, to 1.25 per cent and 2.25 per cent respectively. NS&I's children's bonus bond is the other product to experience an interest rate increase, up by 0.2 per cent to 2.5 per cent.
The increase brings NS&I's savings account deals back into competition with rival banks . Intelligent Finance's instant cash ISA remains top dog in the field, paying 2.75 per cent, with Standard Life Bank offering 2.65 per cent on their equivalent product. NS&I are now offering the same rate as Egg and ING.
The increase comes as NS&I try to encourage savers to remain with them. Following the collapse of Icelandic bank Icesave last October, savers withdrew their funds from riskier high interest accounts, instead opting for the safety of government backed NS&I. However, rates rise on savings products, savers are returning to the more lucrative products offered by rival banks.
NS&I Increases Rates to Compete with Rival Banks
Financial Services > e-banking > Banking news
NS&I Increases Rates to Compete with Rival Banks
Fri, 04 Sep 2009
Recommended links
Tax Free ISAsReclaim Bank Charges
Savings Accounts
Banking FAQs
Internet banking guides
Best current accounts
Compare savings accouns
Banks Enjoying Tidy Margin on Tracker Mortgages
Banks need to do more to combat internet fraud
Banks Forced To Disclose Details Of Offshore Accounts
Banks Urged To Prepare For Mobile Banking
Consumers Value Security Above All Other Online Banking Features
HSBC voted best for internet banking
Barclays to revamp online banking service
Banks Post Positive Results
Financial Experts Claim an Increase in Savings Returns Despite Low Bank Rates
Bank of England Reject Expansion of Quantitative Easing
Banking Regulation Shake Up to be Announced
Bank of England Warns of Restricted Credit Card Availability
Lloyds Banking Group Announces Further Job Cuts
Bank of England Warn of Trouble Ahead for Banks
Banks Introduce Better Savings Accounts
Banks Rejecting 16,000 Mortgage Applications a Month
Bank of England Vote Unanimously to Hold Interest Rates
Bank of England Warns of Effects of Negative Equity
Bank of England Holds Interest Rates Despite Positive Signs
Savers Hit by Bank Announcement
Natwest and RBS protect bank customers
Spanish Bank to Rebrand UK Businesses
Bank of England Forecast to Hold Rates Well into Next Year
Bank of England Reveal Meagre Savings Rates as Savers Go Long
Bank of England Warn of Gradual Recovery
| Banking news |
|---|
| Banks failing on online fraud says MPs report - Tue, 05 Apr 2011 |
| Lloyds TSB is to change the interest rates on its Vantage current account - Thu, 31 Mar 2011 |
| Contactless debit cards from Lloyds TSB - Tue, 29 Mar 2011 |
| More News |
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company