NS&I Changes Interest Rates and Prizes

May 14, 2026, 13:32
UKFinance

Introduction

NS&I changed the interest rates for some savings accounts. They also changed the prizes for Premium Bonds.

Main Body

On May 14, NS&I increased rates for four accounts. For example, the Direct ISA is now 3.8%. In July, the Premium Bonds prize rate will be 3.8%. It is now easier to win a prize. There are more big prizes now. People can win £25,000, £50,000, or £100,000. There are fewer small prizes of £25. Some other banks give more money than NS&I. Some banks give more than 4%. NS&I wants to be fair and competitive. Prices in shops may go up. This is because of problems in Iran and oil prices. The Bank of England might raise rates again this year.

Conclusion

NS&I increased its rates and prizes. However, some other banks still pay more money.

Learning

💡 The 'Comparison' Trick

To reach A2, you need to describe if something is more or less than another thing. Look at how the text compares banks:

  • More →\rightarrow Higher amount (e.g., more money, more big prizes)
  • Fewer →\rightarrow Smaller amount of things you can count (e.g., fewer small prizes)

Quick Guide: How to use them

  1. More + [Noun]: Use this for almost everything. Example: "Some banks give more money."

  2. Fewer + [Countable Noun]: Use this when you can count the items (1, 2, 3...). Example: "There are fewer small prizes."

Spot the Difference

  • NS&I →\rightarrow 3.8%
  • Other Banks →\rightarrow 4%
  • Result: Other banks give more money than NS&I.

Vocabulary Learning

account (n.)
A place where money is kept and managed.
Example:She opened a savings account at the local bank.
bank (n.)
An institution that accepts money and gives loans.
Example:He went to the bank to deposit his paycheck.
money (n.)
Coins or notes used to buy goods and services.
Example:I need more money to buy a new phone.
rate (n.)
A number that shows how much something costs or grows.
Example:The interest rate on the savings account is 3.8%.
prize (n.)
A reward given for winning or being chosen.
Example:He won a £25,000 prize in the lottery.
win (v.)
To get a prize or victory in a competition.
Example:She can win a prize if she enters the contest.
fair (adj.)
Treating everyone equally and without favoritism.
Example:The bank wants to be fair to all its customers.
competitive (adj.)
Trying to win or be better than others.
Example:The bank is competitive with other banks that offer higher rates.
price (n.)
The amount of money needed to buy something.
Example:The price of oil has caused shop prices to go up.
shop (n.)
A place where goods are sold to customers.
Example:The shop sells groceries and household items.
year (n.)
A period of 12 months.
Example:The bank may raise rates again this year.
problem (n.)
A difficulty or situation that needs a solution.
Example:There is a problem with the supply of oil.
oil (n.)
A liquid used for fuel, heating, or cooking.
Example:Oil prices have increased because of problems in Iran.
give (v.)
To provide or hand over something to someone.
Example:The bank gives more money than other banks.
big (adj.)
Large in size or amount.
Example:There are now big prizes worth £100,000.