National Savings & Investments has quietly raised the rate on two of its variable accounts.
Your Direct Saver Easy Access account now pays 4 percent, up from 3.65 percent.
Income bonds – an easy-access account that pays interest monthly and tends to be popular with pensioners – have risen from 3.59 per cent to 3.93 per cent.
Both new and existing savers will benefit from the rate increase.
Ongoing: NS&I has increased the interest rate on two of its savings accounts
However, its tax-free Direct Isa is stuck at a modest 3 per cent.
Last month we predicted that NS&I would have to do something to attract savers and meet the lofty £9bn funding target it had set.
NS&I planned to announce the changes last week with the usual fanfare, but the election announcement scuttled that plan.
As a government agency, it cannot be considered to do anything that could influence your vote.
Premium bonds remain unchanged, with an underlying interest rate of 4.4 percent.
Meanwhile, it has a one- and three-year British savings bond on offer, with rates of 4.5 percent and 4.15 percent respectively.
Its Green Savings Bond, fixed for three years, offers a low interest rate of 2.95 percent.
