NS&I Direct ISA Interest Rate Rises to 6.05% Following Bank of England Base Rate Increase

National Savings and Investments (NS&I) have immediately raised the interest rate of their Direct ISA product in the wake of the change in base rate.

(PRWEB) May 24, 2007

National Savings and Investments (NS&I) have announced that the interest rate paid on NS&I's Direct ISA will rise from 5.80% per annum to 6.05% following the increase by the Bank of England in the base rate by 0.25%.

The new higher rate becomes effective immediately and is guaranteed to be at least 0.55% above base rate until the start of April 2008 at the earliest.

The NS&I Direct ISA account (http://www.nsandi.com/products/disa/index.jsp ) was launched a year ago in April 2006 and is available online and by telephone only. Customers can invest up to £3,000 each tax year and also have direct access to their account 24 hours a day. The Direct ISA also comes with the 100% capital guarantee which NS&I is able to offer because all of its savings and investments (http://www.nsandi.com/ ) are backed by HM Treasury.

Direct ISA key features include

  • The ability to invest online and by phone only with a debit card
  • An interest rate which is guaranteed to be 0.55% above base rate until at least April 2008
  • A consistent interest rate, without any short-term introductory bonus
  • Convenience of opening and managing account online and by phone
  • Minimum deposit: £1,000
  • Minimum further deposit: £250 (or £100 by standing order)
  • Minimum withdrawal: £250 to nominated bank account
  • All interest free of UK income tax
  • Direct ISA is open to new customers and those who had opened an NS&I Cash mini ISA (http://www.nsandi.com/products/isa/index.jsp ) by 5 April 2006, but it is not be possible to transfer into NS&I's Direct ISA from any other ISA provider.

NS&I are set to announce any other interest rate changes in due course.

Editors Notes:

About NS&I
National Savings and Investments is an Executive Agency of the Chancellor of the Exchequer, offering tax-free investments through ISA accounts, savings certificates and Premium Bonds (http://www.nsandi.com/products/pb/index.jsp ).

Further information on NS&I, including press releases and product information, is available through the NS&I website or by contacting the NS&I Media Team.

NS&I PR contact:
Jonathan Akerman
National Savings and Investments
375 Kensington High Street
London
W14 8SD
020 7348 9433
http://www.nsandi.com/

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