NS&I interest rate changes

National Savings and Investments (NS& I) is increasing the interest rates on a range of its fixed rate savings offers by up to 0.35% per annum. All new rates come into effect on 20 June.

This rise follows increases in the returns on gilt yields since NS& I last changed interest rates on some of its fixed interest offers on 23 May.

Products to benefit from increased interest rates are Fixed Interest Savings Certificates, Fixed Rate Savings Bonds, Capital Bonds and Pensioners Guaranteed Income Bonds. The changes also mean a new issue of Children's Bonus Bonds will go on sale.

How NS&I prices products

NS&I prices its fixed rate products according to a number of factors, the principal one of which is the return on gilts. Because the return on gilts has been increasing, NS& I is able to offer higher rates on most of its fixed rate products.

NS&I's variable rate products are influenced by Bank of England base rate changes and were adjusted on 23 May.

John Prout, NS&I sales director, said: "With rising returns on gilts, we're in a position to increase our fixed rates, which is good news for customers who have savings in these particular products."