Disappointment for those wedded to NS&I

Just in time for Valentine’s Day, National Savings & Investments (NS&I) has confirmed that from 12 February 2026, the interest rates on its popular easy-access savings accounts will fall:

The Direct Saver rate will drop from 3.30% gross/AER to 3.05 per cent gross/AER.

The Income Bonds rate will fall from 3.26%/3.30% AER to 3.01%/3.05% AER.  

These reductions come on the back of the cuts made to the Guaranteed Growth and Guaranteed Income Bonds, announced last month and will be another blow to those loyal NS&I customers.  

This is the first change in these rates since March 2025, although the base rate has been cut a number of times from 4.50% in February 2025 to its current level of 3.75%. NS&I says it is adjusting its pricing in line with wider market conditions.  

However, when you compare the new rates with the best from the open market, you can earn far more, especially on a large balance.  

How do these new rates stack up against the best easy-access accounts?

While NS&I’s products remain competitive compared to the high street banks, in the context of the whole of the savings market they are looking far less attractive.

At the top of our easy-access best buy table sits the Chase Saver with the boosted rate, paying 4.50% AER variable for the first 12 months for new customers who open or have opened a Chase current account from 29 December 2025. This includes a 2.25% fixed boost for 12 months added on top of the standard variable rate.  

That is a sizeable step up from NS&I’s 3.05% but the catch is that it is for new customers only and you need to have a current account with Chase opened since December 2025.  

A strong competitor is the DF Capital Easy Access Account (Issue 7) paying 4.20% AER variable and the account offers unlimited withdrawals.

For those who need monthly interest, Shawbrook Bank’s Bonus Easy Access Savings Account Issue 5 is paying 4.13% AER/ 4.05% monthly.

To put those differences in context, here’s how much interest you’d earn in 12 months on a deposit of £120,000:

NS&I Direct Saver at 3.05%: £3,660 before tax is deducted

DF Capital Easy Access Account at 4.20%: £5,040 before tax is deducted

That’s over £1,300 more in gross interest with DF Capital in a year on the same sum of cash. The wider picture is clear: there are higher-paying alternatives currently available.  

A strong competitor is the Nottingham Building Society Bonus Access Saver paying 4.14% AER variable for the first 12 months, as this rate includes a 2.44% variable bonus until 30/4/2027. But the account offers unlimited withdrawals.

For those who need monthly interest, Shawbrook Bank’s Bonus Easy Access Savings Account Issue 5 is paying 4.13% AER/4.05% monthly.  

The Chase offer at 4.50% would produce £5,400 in gross interest over the year on the same £120,000, although as mentioned above, there are other hoops that need to be jumped through in order to be eligible for this account.

Why NS&I is still popular for many savers

Despite being less competitive on headline rates, NS&I remains extremely popular due to its unique protection proposition.

All money you hold with NS&I is 100 per cent guaranteed by HM Treasury, meaning the capital you put in is protected in full, regardless of how much. This is stronger cover than banks and building societies, where protection is through the Financial Services Compensation Scheme (FSCS).  

That said, from 1 December 2025, the FSCS protection limit was increased from £85,000 to £120,000 per person, per authorised institution. So, most people will have adequate protection in the unlikely event a bank or building society fails, as your deposits are protected up to that level by the FSCS.  

That is great protection for cash held across typical savings accounts, but for those with large cash balances above £120,000, NS&I’s stronger guarantee remains an important factor in deciding whether to keep all cash under one roof, or to distribute it across several providers.

What about cash platforms?

Another option for those with large cash holdings is a cash savings platform such as our Savers Hub provided by Insignis. These platforms let you spread savings across multiple banks and building societies from a single login, often with competitive interest rates.

It means you can keep more than £120,000 protected in multiple savings accounts without the hassle of managing a number of accounts yourself, and you can often find competitive rates that beat NS&I and many high street offerings.

So, what should savers do?

Here’s a simple rule of thumb:

If security is paramount and you have large sums over the FSCS threshold, NS&I is still worth considering because of the full government guarantee on higher amounts.  

But, if you want the best return on a large funds, whether that’s emergency fund easy access savings or longer term fixed rate options, look at top-paying options and consider spreading risk via a savings platform.

If you want to make your cash work harder, it is important to compare rates regularly and move money when better deals arise. In a market that is shifting and where relatively small rate differences can add up to hundreds of pounds over a year, staying informed is the best way to keep your savings working as hard as possible. Check our best buy tables for the most up to date savings rates. 

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Rates correct as at 09/02/2026.

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.  

The Financial Conduct Authority (FCA) does not regulate cash flow planning.