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NS&I increases interest rates on ISA products

NS&I has announced that it is increasing interest rates on both its Junior ISA and Direct ISA. Interest rates paid on Junior ISA will be increasing by 75 basis points from 2.50% tax-free/AER to 3.25% tax-free/AER. In addition, the interest rate paid on Direct ISA will be increasing by 15 basis points from 0.75% tax-free/AER to 0.90% tax-free/AER.


1. Tax-free means that the interest is exempt from UK Income Tax.
2. 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.

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