It’s now been just over a week since the Bank of England raised the base rate and we are still waiting for the majority of providers to reveal just how fairly they will be treating their customers.
But among the early revealers, this week NS&I has announced that it will be passing the full increase on to savers in its variable rate products, from 1st December – this includes the rate applied to the prize fund of the ever-popular Premium Bonds.
Check what the new rate will be on your NS&I account in the table below.
Variable rate savings products
New rate (from 1 December 2017)
Of course, whilst NS&I products are hugely popular, mainly due to the unique protection that any funds held with NS&I has (all products offer 100% capital security, because NS&I is backed by HM Treasury), there are other savings accounts available that are currently paying more.
For example, rather than the easy access Income Bonds, Direct Saver or Investment Account, Paragon Bank is paying the market leading rate of 1.31% gross/AER, with Birmingham Midshires and RCI Bank next, both paying 1.30% gross/AER
Check out our best buy tables to see if your NS&I account is worth hanging on to.
What you can’t find anywhere else are Premium Bonds, as the return is down to the random allocation of the prize fund each month, so you can’t compare the return with what you can get elsewhere, as you might win nothing – or you might win £1million – however unlikely the latter is.
The good news for all Premium Bond fans out there is that with an increase in the annual prize fund interest rate, the odds of each £1 premium bond winning something - even if it is just £25 - will rise from 30,000:1 to 24,500:1
If you need any help looking for an alternative or would like to discuss your savings in more detail, please get in touch on 0800 321 3581, we’d love to hear from you.