What a first rate move

Millions get an interest rise...but they must wait until next month

A STATE-OWNED bank has increased interest rates for millions of savers.

National Savings & Investment is to pay an extra 0.25% on five products including some ISAS.

But “for operational reasons” the increases will not take place until next month – four weeks after the Bank of England doubled the base rate to 0.5%.

Premium Bond holders benefit too, with the chance of winning going from 30,000 to one to 24,500 to one. The increases are far from startling but they are better than at a lot of banks.

Research by experts Moneyfacts shows only six providers have increased savings rates since last week or are poised to do so. Another added just 0.05%.

The vast majority say rates remain under review.

But many borrowers are already feeling the pain. A total of 18 providers have already announced immediate increases in their base rate tracker mortgages.

GOING UP Savings rate