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 ...

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