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As the cost of living crisis continues, Britons are urged to shop around to make sure they are getting the best deals possible that are available to them. NS&I has increased the interest rates on a range of its products in the last couple of months.

More than 2.7 million savers are set to benefit from the savings provider’s changes.

The new rates on these products will only be available to existing customers with maturing investments as they are not currently on sale.

NS&I has increased the interest rate on its five-year Guaranteed Income Bonds.

The Guaranteed Income Bonds will offer a savings rate of up to 3.80 percent.

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The amount of interest provided depends on the fixed-term agreement each individual signs up for.

Fixed-term savings products increase available from December 1 include:

  • Guaranteed Growth Bonds (one year) is currently 1.85 percent gross/AER and will increase to 3.60 percent gross/AER (+175 basis points)
  • Guaranteed Growth Bonds ( two year) is currently 2.25 percent gross/AER and will increase to 3.65 percent gross/AER (+140 basis points)
  • Guaranteed Growth Bonds (three year) is currently 2.55 percent gross/AER and will increase to 3.70 percent gross/AER (+115 basis points)
  • Guaranteed Growth Bonds (five year) is currently 2.55 percent gross/AER and will increase to 3.80 percent gross/AER (+125 basis points)

The range of Guaranteed Income Bonds and Fixed Interest Savings Certificates are also set to increase, giving savers up to 3.70 percent from December 1.

For more information, people can visit the NS&I website. 

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He continued: “Some of the rates we’re now paying – including on Premium Bonds – are the highest that they have been in over a decade, which is great news for savers.

“The changes to interest rates we’ve announced today will help ensure that our products are priced appropriately when compared to those offered by our competitors.”

In September of this year, NS&I increased the prize fund rate for Premium Bonds from 1.40 percent to 2.20 percent.

As a result, the chances of someone winning a cash prize have also improved from 24,500 to one to 24,000 to one.

Savers are urged to shop around to find the best deals for them.