NS&I announces new rates

This is the first time the executive agency has increased these rates since November 2004. Benchmark gilt yields have been rising on the open market, hence the change, NS&I says. The new rates are as follows: New tax free ratesNew rate p.a. (AER)Equivalent grossed up rate for basic rate taxpayersEquivalent grossed up rate for higher rate taxpayersChildren's bonus bond 18th issue, guaranteed compound rate over 5 years, including fifth anniversary bonus4.10% (+0.10%)n/an/a Fixed rates (gross rates)New rate p.a.AER1-year Pensioners Guaranteed Income Bonds4.20%(+0.20%)4.28%2-year Pen...