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Blow to savers as NS&I cuts rates
National Savings & Investments is reducing the interest rates on its income bonds, Direct Saver and Direct ISA from September, to reflect the low interest rate environment.
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 cut of 0.4%. All changes will come into effect from 12 September this year.
NS&I said the changes reflect the lower interest rates now available elsewhere following its regular review of the savings market.
Jane Platt, chief executive at 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 [these] accounts.”