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NS&I increases interest rates on ISA products

Isa news for Financial Advisers & Paraplanners

4 Mar 2019

NS&I increases interest rates on ISA products

NS&I has announced that it is increasing interest rates on both its Junior ISA and Direct ISA. Interest rates paid on Junior ISA will be increasing by 75 basis points from 2.50% AER to 3.25% AER. In addition, the interest rate paid on Direct ISA will be increasing by 15 basis points from 0.75% AER to 0.90% AER.

The decision to increase the interest rate on Direct ISA follows the changes in the ISA market and balances the interests of our savers, the taxpayer and the stability of the broader financial services sector. The increase to the interest rate on Junior ISA reflects NS&I’s aim of attracting younger customers and inspiring a stronger savings culture.

Jill Waters, Retail Director, NS&I, said:

“We are delighted to increase the interest rates on both our Junior ISA and Direct ISA.

“We want to ensure that NS&I is front of mind to our customers when making savings decisions, and these improved interest rates ensure that we are providing a fair rate, while guaranteeing that their money is 100% secure.

“Our Junior ISA offer gives parents and guardians a simple and straightforward way to invest for their children, at a competitive rate of interest. This will help their children build a nest egg that they can then take forward into adulthood.”

Variable rate savings products

Product

Current rate

New rate

Direct ISA

0.75% tax-free/AER

0.90% tax-free/AER

Junior ISA

2.50% tax-free/AER

3.25% tax-free/AER

 

 

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