More than 1.3 million people will see a big boost to their savings after National Savings & Investments increased rates on 14 accounts this morning.
Rates on variable rate accounts rose by up to 0.7 percentage points, as the bank was forced to increase them to keep pace with rising savings rates elsewhere.
Its direct saver account will now pay 1.2 per cent, up from 0.5 per cent and closer to the top easy-access account at Al Rayan Bank, which pays 1.6 per cent.
Its income bonds will pay the same amount and its direct individual savings account (Isa) will pay 0.9 per cent, up from 0.35 per cent. The best easy-access Isa pays 1.4 per cent from Cynergy, Shawbrook and Aldermore banks.