NS&I to increase interest rates on Direct Saver and Income Bonds

NS&I has increased the interest rates on its Direct Saver and Income Bonds to 0.50%, from today (10 February 2022).

The interest rate on both Direct Saver and Income Bonds has increased by 15 basis points, with the interest paid on both accounts changing from 0.35% gross/AER to 0.50% gross/AER.

NS&I Chief Executive Ian Ackerley, said: “The new interest rates will ensure that our products are priced in line with the broader savings sector. The increase will also help us to meet our annual Net Financing target for 2021-22 of £6 billion, in a range of £3 billion to £9 billion.”

Product	Previous interest rate	Interest rate from today (10 February 2022)
Direct Saver	0.35% gross/AER	0.50% gross/AER (+15 basis points)
Income Bonds	0.35% gross/AER	0.50% gross/AER (+15 basis points)

Notes to Editors

1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.
2. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year, the rate quoted and the AER will be the same.
3. Gross is the taxable rate of interest without the deduction of UK Income Tax.
4. Tax-free means the interest is exempt from UK Income Tax.
5. Information on our products can be found here.
6. For further information please contact the NS&I media team.