NS&I sees deposits in new savings accounts down £600m, but sales of premium bonds continue to rise
National Savings and Investments (NS&I) recorded a significant slowdown in savers opening new accounts.
Government-backed banks withdrew just £172m from interest-earning accounts in October, the latest figures show.
This is a significant drop from the previous month’s £801m and less than a tenth of the £1.8bn that came in in August.
The downside: National Savings & Investment’s October earnings were just £172m, the latest figures show a significant drop from the previous month’s £801m.
Sales of premium bonds continue to increase while funds are flowing out of NS&I savings accounts. In October, the saver put his £207m into premium bonds, which now stand at £119.3bn.
Around £35m has come out of other savings accounts as interest rates are lower than those offered by other banks and housing associations.
NS&I last raised interest rates in October, but it hasn’t offered savers anything following the recent base rate hike. His second most popular account, after Premium Bonds, is Direct Saver for its easy access.
Available online or by phone, payouts are 1.8%, well below the 2.81% of Al Rayan’s top easily accessible online accounts.
Kent Reliance accounts are available online or by mail and pay 2.47% while Scottish BS gives you 2.3%.
NS&I’s Direct Isa pays 1.75%. Scottish BS could do better at 2.5%, Kent Reliance at 2.43% and Skipton at 2.25%.
The NS&I Income Bond has an interest rate of 1.8% and is payable monthly. At Coventry BS online you earn 2.85% as long as you don’t make more than 6 withdrawals each year.
Kent Reliance pays 2.44% into an easily accessible account. This account can be opened online or by mail. NS&I postal investment accounts pay only 0.4%.
sy.morris@dailymail.co.uk
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