Elevated inflation and rising interest rates are forcing (some) banks to put a bit of effort into fighting for our cash. Average rates on an easy-access savings account are nearly 15 times higher than they were 12 months ago, and even the UK's National Savings & Investments (NS&I) has got in on the act.
NS&I announced two increases to its Premium Bond prize rate in the last two weeks of June: bumping up the rate in July to a 15-year high of 3.7 per cent and, from August, the prize rate will be 4 per cent. It then subsequently upped the rate on its one-year Guaranteed Growth and Income bonds to 5 per cent.
Now, of course, usual caveats apply when discussing Premium Bonds: namely that those rates aren’t guaranteed. They’re based on the probability of winning a prize. You could earn a lot more or win nothing at all. But for those who are set on putting money away, it sets up an interesting dilemma for those with substantial savings, and high earners.