Government-backed savings provider National Savings and Investments has announced that the interest rate on its fixed rate savings deals will be increased.
This follows after an upward movement in the market rates for government bonds (gilts), according to National Savings and Investments.
Interest rates that are 0.3 per cent higher than before are available on the new issues of the provider's inflation-beating savings range, fixed rate savings certificates, fixed rate savings bonds, children's bonus savings bonds, pensioners guaranteed income savings bonds and capital savings bonds.
The inflation-beating savings range offered by National Savings and Investments comprises savings certificates over three and five years and are linked to the retail prices index (RPI).
Savings certificate holders will receive returns linked to this headline rate of inflation, which is currently at 2.4 per cent, as well as guaranteed interest rates.
"This means the returns outstrip inflation and, as nothing is taken away in tax, the spending power of the investment is increased by the end of the term," according to National Savings and Investments.
These new savings deals are currently available by telephone, online, at more than 17,000 branches of the Post Office and at a number of Tesco branches.
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