NS&I is raising interest rates on some of its savings accounts – who will benefit? | Personal finance | Finance

Government-backed NS&I savings accounts have been popular with Britons since the 1950s. Last month NS&I raised the interest rate, meaning some savers will get more for their money.

Britons who have NS&I Direct Saver and Income Bonds will benefit from higher interest rates on their savings.

Last month, the interest rate paid on both accounts was reduced from 0.35% gross/AER to 0.50% gross/AER.

Ian Ackerley, chief executive of NS&I, said the decision was made to align the accounts with those of its competitors.

He said: “The new interest rates will ensure that our products are priced in line with the wider savings industry.”

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Premium bonds, on the other hand, are popular due to the promise of potentially hitting the £1m monthly jackpot.

However, some commentators have questioned whether the Brits would be better off investing their money elsewhere.

Financial journalist Martin Lewis suggested people weigh their options before making a decision.

He said it might be a good option for some, concluding, “The more bonds you have, the more chances you have of winning.”

People can use the Prize Checker to see if they have any unclaimed prizes.

The tool is available on the NS&I website.

Alternatively, they can download the NS&I price checker app for Google or Apple – or they can ask Alexa.

The next premium bond draw will take place on Friday, April 1.

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