NS&I re-launches investment account
National Savings & Investments (NS&I) has re-launched its Investment Account at a higher interest rate than it previously offered.
The account now offers 0.75 per cent before tax, compared with between 0.2 and 0.3 per cent previously, depending on the account balance.
Deposits and withdrawals on the account can no longer be made at Post Office branches as the account has been made postal only as part of a modernisation strategy and pass books are no longer used.
Regular deposits to the account can be made through a standing order.
Existing Investment Account holders will automatically have their investment held at the higher rate of interest, or can have their balance repaid in full.
They also have the option to transfer their balance to NS&I’s Direct Saver account which pays 1.5 per cent before tax.
Jane Platt, chief executive at NS&I, said: “The decision to move the Investment Account to postal only reflects the growing number of customers who are now managing their NS&I savings directly with us.
“I’m pleased that we can now offer Investment Account savers an improved rate of interest.”
Other changes being introduced by NS&I include the closure of the Easy Access Savings Account from 27 July.
Consumer group Which? has warned that NS&I’s relaunched Investment Account still offers poor value compared with similar accounts offered by banks and building societies.
New internet bank GE Capital Direct has recently launched two easy access savings accounts.
The GE Capital Direct Saver pays 2.35 per cent before tax, with no initial bonus, while its second new account pays 2.65 per cent before tax, which includes a 1.15 per cent bonus for the first year.
Sainsbury’s Bank’s eSaver Special offers 2.7 per cent before tax.