NS&I has announced that it is increasing interest rates on both its Junior ISA and Direct ISA

NS&I has announced that it is increasing interest rates on both its Junior ISA and Direct ISA.

Interest rates paid on Junior ISA’s will be increasing from 2.50% AER to 3.25% AER.

This increase makes the NS&I offering extremely competitive in the Junior ISA market and will apply to both existing and new Junior ISA accounts, this is a further indication of NS&I’s commitment to attracting a younger generation of savers who will grow up with a strong savings and financial planning culture.

The interest rate paid on adult Direct ISA will be increasing from 0.75% AER to 0.90% AER. Whilst the increase is welcome it is not market leading and there are more competitive accounts available in the cash ISA market.

For more information and opinions on the NS&I increases have a look at the latest article published by our sister company Savings Champion.