NS&I boosts fee on two financial savings accounts together with its easy-access

National Savings & Investments has quietly increased the rate on two of its variable accounts.

Its Direct Saver Easy Access Account now pays 4 per cent, up from 3.65 per cent.

Income Bonds — an easy-access account which pays interest monthly and tends to be popular with pensioners — is up from 3.59 per cent to 3.93 per cent.

Both new and existing savers will benefit from the rate rise.

On the march: NS&I has boosted the rate on two of its savings accounts

Its tax-free Direct Isa, however, is stuck at a lowly 3 per cent. 

Last month, we predicted NS&I would have to do something to attract savers to meet the high funding target of £9billion it has been set.

NS&I planned to announce the changes last week with the usual fanfare, but the election announcement scuppered that plan.

As a government agency, it cannot be seen to do anything that might influence your vote.

Premium Bonds remain unchanged, with an underlying interest rate of 4.4 per cent. 

Meanwhile, it has a one-year and three-year British Savings Bond on offer, with rates of 4.5 per cent and 4.15 per cent respectively. 

Its Green Savings Bond, fixed for three years, offers a lowly 2.95 per cent interest.