UK savings: 5% interest rate deals may not last, say experts
Source: The Guardian ·
Competition is hotting up, with National Savings & Investments lifting rates to the highest in yearsNational Savings and Investments (NS&I) has increased the returns on some of its accounts, with many now paying more than 5% for the first time in nearly three years.Competition in the savings market has been growing, leading to some of the highest interest rates for years. Continue reading...
From the source
National Savings and Investments (NS&I) has increased the returns on some of its accounts, with many now paying more than 5% for the first time in nearly three years. Competition in the savings market has been growing, leading to some of the highest interest rates for years. However, in the current climate, attractive deals do not always hang around for long, says Rachel Springall at the financial data website Moneyfactscompare.co.uk. If a provider attracts enough savings cash it will pull a product from sale. NS&I has upped the rates on its “British savings bonds”, which are rebadged versions of its guaranteed growth bonds and guaranteed income bonds. They offer a fixed interest rate over their one-, two-, three- or five-year bonds. The deals are available to new customers and those with existing accounts that are maturing. With the growth version, interest is added each year and paid when the bond matures, while with the income version, interest is paid monthly. Looking at the…
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