National Savings and Investments (NS&I) cuts interest rates
We know many of our clients save with NS&I. In a time of lower interest rates with banks and building societies, this is a blow to anyone holding accounts with NS&I. The reduction is significant for those holding its Direct ISA, Direct Saver, Income Bonds and Investment Account.
The rates though won’t reduce until 6 June, plenty of time if you wish to find a new home for your savings.
|
Balance |
Current rate |
New lower rate |
Effective date |
Direct ISA |
£1+ |
1.25% tax-free/AER |
1.00% tax-free/AER |
6 June 2016 |
Direct Saver |
£1+ |
1.10% gross/AER |
0.80% gross/AER |
6 June 2016 |
Income Bonds |
£500+ |
1.25% gross 1.26% AER |
1.00% gross/AER |
6 June 2016 |
Investment Account |
£1+ |
0.75% gross/AER |
0.45% gross/AER |
1 July 2016 |
They are also reducing the prize fund rate on Premium Bonds.
For more information see the NS&I web site—click here
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