NS&I increases interest rate on Direct ISA, Direct Saver and Income Bonds

NS&I has announced that it will be increasing the interest rates on its Direct ISA, Direct Saver and Income Bonds to 0.35% on 29 December 2021.

The interest rate on Direct Saver and Income Bonds will be increased by 20 basis points, from 0.15% gross/AER to 0.35% gross/AER. The interest rate on Direct ISA will be increased by 25 basis points, from 0.10% tax-free/AER to 0.35% tax-free/AER.

NS&I’s Net Financing target for 2021-22 is £6 billion, in a range of £3 billion to £9 billion. In October this year, NS&I published its year-to-date total Net Financing performance of £0.6 billion. The decision to increase the interest rates on these products is in order to help NS&I meet its annual Net Financing target.


Current interest rate

Interest rate from 29 December 2021 (change in brackets)


Direct ISA

0.10% tax-free/AER

0.35% tax-free/AER (+25 basis points)

Direct Saver

0.15% gross/AER


0.35% gross/AER (+20 basis points)

Income Bonds

0.15% gross/AER


0.35% gross/AER (+20 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.

Adviser email updates

Adviser email updates offer the quickest, easiest way to stay up to date with the latest news on our products, interest rates and other important developments affecting advice firms.

In order for us to send you adviser email updates, please provide your contact details.