National Savings & Investments (NS&I) is cutting interest rates on its Income Bonds, Direct Saver and Direct ISA from September, due to the continuing low interest rate environment.
NS&I said it had reduced rates on its products because of a general decline in the savings market. The cuts mean rates on NS&I’s income bonds and Direct ISA will be 1.25% and 1.75% respectively, both reductions of 0.5%. The rate on its Direct Saver will be 1.1%, a fall of 0.4%. These changes are efffective from 12 September this year.
NS&I stated the changes reflect the lower interest rates now available elsewhere following its regular review of the savings market.
Chief executive Jane Platt said: “Rates across the savings market have fallen over recent months and, to ensure we continue to strike a balance between the needs of our savers and taxpayers, we have taken the difficult decision to reduce the rates on these accounts.”
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