As NS&I savings lose their appeal, what are the alternatives?

Savers with National Savings & Investment (NS&I) will be aware interest rates have fallen. With this in mind, it might be a good time to shop around elsewhere for better deals.

With the NS&I Fixed Bond rate down to 3.95%, Direct Saver rate dropping to 3.5% and Income Bond rate down to 3.44%, this is disadvantageous news for pensioners holding these accounts. So, what attractive deals are there and what do they offer?

Online bank Chetwood is offering 4.71%, while the Atom Bank Instant Saver Reward pays 4.85% to savers who don’t withdraw in a month and 3.25% to those who do. These accounts respectively pay 4.61% and 4.75% if interest is received monthly. These figures compare favourably with NS&I’s 3.44%.

Building societies also offer a better deal, with Kent Reliance paying 4.35%, Cambridge paying 4.25% and Family 4.65%. The Co-op Bank pays out 4.59% provided you only withdraw once a year.

Additionally, you could earn circa £85 more interest per £10,000 transferred from a NS&I fixed-rate bond to a more rewarding account.
Of course, there are still benefits if you stick to NS&I. Your entire savings are protected by the Government, whereas banks only protect your first £85,000, and Premium Bonds offer attractive tax-free cash prize draws.

If you are retirement planning in Cheshire and wondering about the best type of savings account, contact specialist financial planner Hartey Wealth Management to set up an appointment.

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