NS&I ups rates on three products after BoE rise

Direct ISA to rise by 25 basis points

Ayesha Venkataraman
clock • 2 min read

State-owned savings bank NS&I will raise its rates on December 29 in a bid to hit its net financing target for 2021/22, which is £6bn (plus or minus £3bn).

National Savings & Investments (NS&I) revealed it will increase rates on its Direct Saver and Income Bonds by 20 basis points from 0.15% to 0.35%, as well as a 25-point bump on its Direct ISA rate, taking it from 0.1% to 0.35%. This in addition to boosting its Income Bonds rate from 0.01% to 0.15% last month. The rate rises follow the Bank of England's decision last week to raise rates to 0.25%, surprising markets in the process. The central bank said the economic conditions it had been waiting for to raise rates had been met, noting that "the labour market is tight and has continued to ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Digital natives, critical minds: What Gen Z's scepticism means for the future of wealth management

Digital natives, critical minds: What Gen Z's scepticism means for the future of wealth management

'The industry faces a radical shift in generational expectations'

Jim London
clock 14 July 2025 • 3 min read
'Unworkable' IHT/pension reform risks undermining Consumer Duty

'Unworkable' IHT/pension reform risks undermining Consumer Duty

‘They’ve smashed complex pensions and complex IHT together’

Sahar Nazir
clock 14 July 2025 • 4 min read
Sector divided on Reeves' pullback on Cash ISA reform

Sector divided on Reeves' pullback on Cash ISA reform

‘A big win for defenders of a broken system’

Sorin Dojan
clock 11 July 2025 • 2 min read