National Savings & Investment (NS&I) has raised its Direct Isa rates, but the news is bittersweet for savers, as the deal still pays less than six months ago.
This week NS&I raised rates on its Direct Isa from 0.75pc to 0.9pc. But just six months ago the Direct Isa paid 1pc.
NS&I cut the rate on the deal from 1pc to 0.75pc in September.
The Direct Isa is easy access and can be opened with just £1. But the 0.9pc rate paid by NS&I lags behind seven equivalent Isas that pay savers more.
The best rate is 1.35pc, paid by Paragon Bank for its easy access cash Isa.
Rachel Springall, of Moneyfacts, the financial expert, said NS&I aims to offer a reasonable return, but that “the word ‘reasonable’ is something that does need to be underlined many times over”.