Now National Savings pays the best rates: Government-backed firm aims to attract £11bn of new money next financial year

January 18, 2017 | 5years | NEWS AND INTEREST

Savers searching for a better deal should look to government-backed National Savings & Investments.

While big banks have embarked on a rate-cutting frenzy in recent weeks, NS&I rates have been left untouched. This is because unlike the banks, the £135billion-strong firm wants your money.

For its next financial year - which starts on April 1 - it aims to attract at up to £11billion of new money from savers. This is up from an original goal of £6billion.

So in a bid to entice savers, it has allowed its rates to float to the top of the best buy tables.

NS&I's easy-access Direct Isa, available online or over the phone, pays 1 per cent - the highest rate on variable accounts.

You can't move existing cash Isas into this account - but you can put £15,240 in this tax year which runs until April 5 (assuming you haven't used your allowance). In the next tax year, starting April 6, you can add up to £20,000.

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