We like NS&I's interest rate increases

Over the past year, savers have had a rough time as the interest rates on their accounts have generally gone down. But this week the government savings arm, National Savings & Investments (NS&I), has bucked the trend.

NS&I has improved its savings rates, even though the Bank of England hasn't moved its rate up. NS&I says it is able to do this because gilts have risen - an indicator that the markets think rate rises are likely.

Its fixed-rate products have all gone up. The two year, tax-free, fixed-rate savings certificate is now 2.7% (a higher rate taxpayer would have to earn 4.5% on a taxed account to match this). The five-year fixed rate has gone up to 3% (the equivalent of 5% for higher rate taxpayers and 3.75% for basic rate).