National Savings hold off on rate cuts

National Savings & Investments (NS&I) has cancelled planned rate cuts on a number of its variable rate accounts, including its popular Premium Bonds, to help savers during the Covid-19 pandemic.

Initially NS&I had planned to cut the prize ‘rate’ on Premium bonds from 1.4% to 1.3% in May.  Proposed rate cuts have also been cancelled on its Direct saver account (which will continue to pay interest at 1%), its Investment account (0.8%), and its Income bonds (1.16%). 

However, NS&I has cut rates on its fixed rate products as planned. This includes its Guaranteed growth bonds, Guaranteed income bonds and Fixed interest savings certificates held by existing customers over different terms, from one to five years.

This will affect those reinvesting after a product matures. If you currently have one of these products then the rate is fixed until the end of the term.

Latest news

News

05 Apr 2024

Investment market update: March 2024

Read more

News

05 Apr 2024

5 practical tips that could help you set realistic financial goals

Read more