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Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
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Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
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Featured - Switching deals
In need of a cash boost?Providers often entice new customers with cash incentives for moving current accounts. Compare deals and find out how to make the switch:
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
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Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
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The move comes after the Government-backed institution added £80 million to the prize pot towards the end of last year.
National Savings and Investments (NS&I) will increase its Premium Bonds prize fund rate to 3.15% from the next prize draw in February.
This latest increase, which takes the fund rate to a 14 year high, comes after the savings institution added £80 million to its prize fund last month.
A bettered rate means that there are more valuable prizes to be won in next month’s draw.
Notably, there are three more prizes of £100,000 and six more prizes at £50,000. Meanwhile, there will be over 121,000 more £50 and £100 prizes each to be won.
Despite this rate rise, the odds of winning some sort of prize remain unchanged at 24,000 to one.
This is partly due to fewer £25 winnings on offer, with NS&I set to cull these prizes by nearly 242,000 next month.
The answer ultimately comes down to your appetite for risk. This, among other factors you need to consider, is explained in more detail in our guide on Premium Bonds.
As interest rates continue to rise, more savers will begin to find that they risk exceeding their personal savings allowance for the year.
In essence, the personal savings allowance allows basic taxpayers to earn up to £1,000 a year in interest tax-free. Higher rate taxpayers can earn up to £500 a year while additional rate taxpayers have no personal savings allowance at all.
If you exceed your personal savings allowance, you could pay income tax rate on your interest. This all depends on several mitigating factors which are explained in our guide How are my savings taxed?
Nevertheless, if you are due to pay tax on your savings, Premium Bonds could be likened to ISAs for their tax-free appeal.
This is because prizes won from investing in Premium Bonds are tax-free, and won’t contribute towards your Personal Savings Allowance.
In addition to its Premium Bond prize fund rate, the Government-backed institution increased the rate on its Direct Saver, Income Bonds and Direct ISA accounts.
This is set to benefit more than 870,000 of its customers, according to NS&I.
Its Direct Saver and Income Bonds, which are similar to easy access accounts, now offer a rate of 2.60% AER and 2.63% AER respectively.
Still, these rates lag behind some of the other best easy access rates on the market. More information on these top rates can be found in our weekly savings roundup.
It is a similar story for the Direct ISA which, despite offering 2.15% AER, is some way behind Virgin Money’s Easy Access Cash ISA Exclusive Issue 2 and its rate of 3,00% AER.
However, the appeal of investing with NS&I might not lie with its rates but in part to its Government backing. For those with large sums of money, every penny of these deposits is backed by the Government if NS&I goes bust. Other providers don't warrant this protection, and are backed instead by the Financial Services Compensation Scheme (FSCS).
This means you can save up to £85,000 in other privately-owned providers and invest in NS&I, spreading the risk of losing your money.
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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
The top rate for a two-year bond edges higher as leading notice returns dip below 5%.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a one-year bond from new savings provider Vida Savings, and a 85% LTV two-year fixed mortgage from HSBC.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With savers depositing £3.1 billion in ISAs in October, make sure your hard-earned cash is receiving competitive returns.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
The top rate for a two-year bond edges higher as leading notice returns dip below 5%.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a one-year bond from new savings provider Vida Savings, and a 85% LTV two-year fixed mortgage from HSBC.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With savers depositing £3.1 billion in ISAs in October, make sure your hard-earned cash is receiving competitive returns.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.