11th June 2013
NS&I is reducing the interest rate on its Income Bonds to 1.25%, its Direct Saver to 1.1% and its Direct ISA to 1.75%. These changes will come into effect from 12 September 2013. NS&I will be writing to customers affected by the interest rate reductions to inform them of the change at least sixty days in advance of it taking place.
NS&I says it sets its interest rates to balance the interests of its savers, taxpayers and the stability of the wider financial services sector. It says it has taken the decision to reduce the interest rates on Income Bonds, Direct ISA and Direct Saver following its regular review of the savings market, which includes the interest rates payable on comparable products. The reductions reflect the lower interest rates now available elsewhere. NS&I customers can sign-up for email notification of all NS&I interest rate changes and other NS&I news here.
Jane Platt, Chief Executive, NS&I, 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, taxpayers and the stability of the broader financial sector, we have taken the difficult decision to reduce the rates on our Direct ISA, Direct Saver and Income Bonds accounts.”
|New variable rates||Rate p.a. (change in brackets)||AER1|
|Direct ISA||1.75% (-0.50%) Tax free||1.75%|
|Income Bonds||1.25% (-0.50) Gross||1.26%|
|Direct Saver||1.1 % (-0.40%) Gross||1.1%|