Government-backed savings organisation National Savings and Investments has announced it is to up savings interest rates on a range of products by up to a quarter per cent.
The decision comes in the wake of the monetary policy committee's 0.25 per cent interest rate hike to 5.5 per cent earlier this month.
This had a knock-on effect on National Savings and Investments variable rate products, while it said gilt markets increases have improved interest rates on fixed-rate deals.
New rates on income bonds and the National Savings and Investments Easy Access Savings Accounts come into effect today.
Premium bonds will see new interest rates change on June 1st.
National Savings and Investments sales director John Prout commented: "Our aim is to provide consistent and fair returns and this means that wherever possible we have increased the rates on our products."
The premium bond prize fund rate will be set at an annual level of 3.8 per cent, free of both capital gains tax and income tax.
According to National Savings and Investments, the odds of winning a prize remain at 24,000 to one, "meaning that someone with the maximum investment in premium bonds of £30,000 could, with average luck, win 15 tax-free prizes a year".
National Savings and Investments increases interest rates
Financial Services > Savings > Savings and Investments News
National Savings and Investments increases interest rates
Wed, 23 May 2007
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