|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
09th of October 2010
|    Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  
October 26, 2009    

NS&I hopes to attract more savers as it raises rates

Bookmark and Share

by Kay Murchie

Government-backed National Savings & Investments (NS&I), which runs Premium Bonds and a variety of savings products, has unveiled a rise in the interest rates on some of its policies.

The news will be welcomed by savers who have been suffering amid the historically low interest rate environment.

NS&I said rates on its guaranteed growth bonds and guaranteed income bonds are going up by as much as 2.95% for new savers.

As a result, some of the fixed rate policies will now pay 4.6% a year before tax.

John Prout of NS&I said: “Customers can choose to invest between £500 and £1 million in our one, two, three or five-year bonds.”

Andrew Hagger of Moneynet.co.uk, the price comparison service, said savers will welcome the news and the one-year growth bond had “shot straight to the top of the one-year fixed-rate bond best buys”.

Mr Hagger adds: “With a maximum investment level of £1 million and the added benefit of 100% security courtesy of the Treasury, regardless of balance, these products will be particularly appealing to those who have concerns regarding the standard £50,000 compensation limit available from most other institutions.”

The financial crisis led to many British savers withdrawing their funds from banks and choosing safer havens, such as the NS&I and in the past financial year, 2008-09, the institute saw a huge influx of extra cash as a result.

During the period, it drew in £26 billion - far exceeding the original target set for it by the Government.

Discuss this in the Finance Markets forums

Story link: NS&I hopes to attract more savers as it raises rates

Need a loan? Apply for one now!
Personal loan application
  • Over 100 lenders
  • Instant decision
  • No obligation quote
  • Safe, easy, and simple
  • Your data is protected

Related financial stories to: NS&I hopes to attract more savers as it raises rates:
Previous: «
Next: »

Visited 1111 times, 3 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: , best buy, , , , , , , , , safer haven,


Banking News feed Banking News

Economy News feed Economy News

Investment News feed Investment News

All Financial News feed All Financial News