More than 3m pensioners keep all of their ISA savings in cash, a Freedom of Information request has revealed.

NS&I is to increase interest rates on its Direct ISA, Direct Saver and Income Bonds to 0.35% from 29 December following the recent Bank of England base rate rise.

Nearly 48% of people have built up a bigger ‘rainy day’ fund during the pandemic to cover spending for up to six months - although 20% of people said their savings fell during the crisis. 

NS&I, the government’s savings arm, has today launched its eagerly-awaited new Green Savings Bond which will offer a gross rate of 0.65% fixed for 3 years.