NS&I increases interest rates on fixed-term savings accounts

NS&I, which is tasked with raising funds for the Treasury, has 24 million customers in the UK. Photograph: NDP/Alamy

National Savings and Investments has bucked the trend in the savings market by increasing interest rates on fixed-term accounts.

The provider, which is backed by the Treasury and tasked with raising funds for government projects, has increased the returns it will pay savers by up to 0.31 percentage points, with the biggest rise available to those willing to lock in for five years.