National Savings boosts rates

National Savings and Investments has announced it is increasing the interest it pays on its fixed rate investments by up to 0.75%.

The rise in returns, which is the second this year, follows a further increase in gilt yields since the rates were last changed in May.

The new rates apply to new investments in fixed interest savings certificates, index-linked savings certificates, children's bonus bonds, guaranteed income bonds and guaranteed growth bonds.

The biggest change is to the rates paid on one-year and three-year guaranteed income bonds, which are rising by 0.75% to 4.65%, and one-year and three-year guaranteed growth bonds, which are also increasing by 0.75% to 4.75%.

Index-linked savings certificates are rising by the smallest amount, increasing by 0.3% to 1% above inflation as measured by the Retail Prices Index.

No change is being made to the group's variable rate accounts and investments which are priced in relation to the Bank of England base rate.

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