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National Savings & Investments has increased the rates it pays out, in line with the 0.25% increase announced recently by the Bank of England.
Not all NS&I products will pass on the full increase, and not all rates will change at the same time.
Variable rate products such as Income Bonds, will see their rates changed on 22 November - except the Direct Isa, which hiked its rate on 9 November.
Premium Bonds will pay an increased fund rate of 3.40% from 3.15% - tax free - for the January 2007 payout. The December rate will peak at 3.55%, but this is because the agency is paying out an additional three £1m jackpot prizes to celebrate the organisation's 50th anniversary.
Odds of winning a prize remain at 24,000:1.
New variable rates
Gross Rates¹ | Rate p.a. (change in brackets) | AER² |
Income Bonds (new rates effective from 22 November 2006) Under £25,000 £25,000+ |
4.45% (+0.25%) 4.70% (+0.25%) |
4.54% 4.80% |
Investment Account (new rates effective from 22 November 2006) £50,000+ £25,000+ £10,000+ £5,000+ £500+ Under £500 |
4.20% (+0.15%) 3.85% (+0.15%) 3.65% (+0.15%) 3.45% (+0.15%) 3.35% (+0.15%) 3.30% (+0.15%) |
4.20% 3.85% 3.65% 3.45% 3.35% 3.30% |
Easy Access Savings Account £50,000+ £25,000+ £10,000+ £5,000+ £1000+ Under £1000 |
4.40% (+0.10%) 4.15% (+0.10%) 3.90% (+0.10%) 3.65% (+0.10%) 3.35% (+0.10%) 1.85% (+0.10%) |
4.40% 4.15% 3.90% 3.65% 3.35% 1.85% |
Treasurers Account (new rates effective from 22 November 2006) £100,000+ £25,000+ £10,000+ |
4.40% (+0.25%) 4.05% (+0.25%) 3.85% (+0.25%) |
4.40% 4.05% 3.85% |
Tax-free rates³ | Rate p.a. (change in brackets) | AER² |
Cash mini ISA (New rate effective from 22 November 2006) | 4.70% (+0.25%) | 4.70% |
Direct ISA (new rate effective from 09 November 2006) | 5.55% (+0.25%) | 5.55% |
Premium Bonds (New rate for December 2006)* (New rate effective from 1 January 2007) | 3.55% (+0.25%) 3.40% (+0.25%) | 3.55% 3.40% |
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Jonathan Boyd on 020 7484 9769 or email jonathan.boyd@incisivemedia.com.
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