National Savings
NS&I RATE CHANGE FOR DIRECT ISA, PREMIUM BONDS, DIRECT SAVER AND INCOME BONDS
RATE CHANGE FOR DIRECT ISA, PREMIUM BONDS, DIRECT SAVER AND INCOME BONDS
NS&I has today, 18th February 2025 announced changes to the interest rates on Direct ISA, Premium Bonds, Direct Saver and Income Bonds.
NS&I has increased the Direct ISA rate, effective from 18th February.
NS&I has decreased the Direct Saver and Income Bonds rates, effective from 5th March.
NS&I has decreased the Premium Bonds prize fund rate, effective from 1st April 2025 prize draw. There is no change to the odds, they remain at 22,000 to 1.
Rate change
| NS&I account | Previous rate | New rate |
| Direct ISA | 3.00% AER (tax-free) | 3.50% AER (tax-free) |
| Premium Bonds | 4.00% Variable. Annual Prize Rate (tax-free) Odds 22,000 to 1 | 3.80% Variable. Annual Prize Rate (tax-free) Odds 22,000 to 1 |
| Direct Saver | 3.50% Gross/AER (taxable) | 3.30% Gross/AER (taxable) |
| Income Bonds | 3.44% gross/3.49% AER (taxable) | 3.26% gross/3.30% AER (taxable) |
Find out more at nsandi.com
Definitions
AER (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.
Residual Account is the account where we transfer remaining holdings from an NS&I product that has been closed and we have been unsuccessful in our efforts to return the money invested to our customers in question.
General Extension Rate is the rate of interest earned by War Savings Certificates (1916-1920) and Issues 2 to 43 of Fixed Interest Savings Certificates.
National Savings and Investments is backed by HM Treasury.