NS&I raises interest rates on two savings accounts – who will benefit?

Martin Lewis gives updated advice on premium bonds

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Government-backed NS&I savings accounts have been popular with Britons since the 1950s. Last month NS&I raised the interest rate meaning some savers will get more for their money.

He said: “The new interest rates will ensure that our products are priced in line with the broader savings sector.”

The Direct Saver is an easy access savings account which can be managed online or over the phone.

Interest is paid annually on this savings account.

Income Bonds are another easy access account but interest is paid monthly.

NS&I said Income Bonds could be ideal for those who want to continuously add to their pot.

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Premium Bonds on the other hand are popular because of the promise of potentially scooping the £1million monthly jackpot.

However, some commentators have questioned whether Britons would be better investing their money elsewhere.

Financial journalist Martin Lewis suggested people to weigh up their options before making a decision.

He said it could be a good option for some, concluding: “The more bonds you have the more chance you have of winning.”

Meanwhile, £74million in Premium Bonds prizes is sitting around unclaimed.

Although NS&I contacts all winners to give them the good news, some people forget to update their address details when they move.

On the NS&I website it says:“You never need to worry about an unclaimed prize.

“We’ll hold on to it until you get in touch with us.”

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People can use the prize checker to see if they have any unclaimed prizes.

The tool is available on the NS&I website.

Alternatively they can download the NS&I prize checker app for Google or Apple – or they can ask Alexa.

The next Premium Bonds prize draw will take place on Friday April 1.

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