NS&I change rates

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NS&I change rates

Thu 17th Aug 2006

National Savings and Investments (NS&I) has announced that it is changing the interest rates it provides on its variable rate savings offers.

After the increase in the Bank of England base rate on August 3rd from 4.5 per cent to 4.75 per cent, interest rates on all variable rate offers from NS&I will be increased.

Interest rates on all NS&I variable rate products will come into effect today, with the exception of the Direct ISA, premium bonds, ordinary account and General Extension Rate which will take effect on September 1st.

John Prout, sales director for NS&I, said: "The changes to our interest rates reflect the increase in the Bank of England base rate.

"We always price our offers fairly and consistently, and wherever possible we will adjust our variable rate products to follow changes in base rate. Our fixed rate products track changes in the gilt markets and we continue to monitor these closely."

The Premium Bond prize fund rate will also increase from 2.95 per cent per annum to 3.15 per cent per annum tax-free.

The odds of winning a prize remain at 24,000 to one, meaning that someone with a maximum investment of £30,000 could expect to win 15 tax-free prizes a year.

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