NS&I cuts interest rates across products - full list of changes and what they mean
NS&I has cut interest rates on several products to reflect the evolving savings market and to ensure they are positioned appropriately in the wider market.
National Savings and Investments (NS&I) has recently announced changes to interest rates for its fixed-term products which came into effect on September 11.
The savings institution, which is primarily known for its Premium Bonds product, has made the move in light of the Bank of England's decision to ease the base rate.
NS&I is a popular savings method for millions of Brits, with its products offering 100 percent capital security protected by HM Treasury.
The changes are designed to ensure NS&I’s interest rates are positioned appropriately in the wider market and help NS&I to balance the interests of its savers, taxpayers and broader financial service sector.
NS&I Chief Executive, Dax Harkins, said: “Our 2-, 3- and 5-year fixed-term Bonds continue to offer savers increased choice, a fair return and longer-term security in a changing market.
“These changes ensure our interest rates are set at an appropriate position and continue to balance the interests of savers, taxpayers and the stability of the broader financial services sector.”
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The changes include:
- The new interest rate on the 2-year Growth option is 4.25 percent gross/AER. The new interest rate on the Income option is 4.17 percent gross / 4.25 percent AER.
- The new interest rate on the 3-year Growth option is 4.00 percent gross/AER and the Income option is 3.93 percent gross / 4.00 percent AER.
- The new interest rate on the 5-year Growth option is 3.90 percent gross/AER and the Income option is 3.83 percent gross / 3.90 percent AER.
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The changes do not impact Premium Bonds but the prize fund for the savings account is susceptible to change.
The Premium Bond sees those who save their money through the product entered into a prize draw that can see them win cash prizes.
The monthly jackpot prize is £1 million while other prizes range from £10,000 to £100,000.
