NS&I has dropped planned cuts to variable interest rates on savings and other products to “support savers” during the pandemic.
The government savings organisation says planned interest rate reductions on NS&I variable rate products, including Premium Bonds, will not go ahead.
The move is designed to help savers coping with the impact of Coronavirus.
NS&I says planned interest rate reductions on NS&I variable rate products - announced in February and due to take effect on 1 May - will not now be implemented.
However, cuts to fixed term product interest rates, also announced in February, will go ahead and will become effective from 1 May.
NS&I says customers do not need to do anything to continue to receive interest at previous rate and should disregard any letters or notifications about interest rate cuts to NS&I variable rate savings products.
Details of the cancelled rate changes:
Variable rate savings products - rate changes cancelled
|
Product
|
Current rate to remain in place
|
Planned reduction, now cancelled
|
|
Direct Saver
|
1.00% gross/AER
|
0.70% gross/AER (-30 basis points)
|
|
Investment Account
|
0.80% gross/AER
|
0.60% gross/AER (-20 basis points)
|
|
Income Bonds
|
1.15% gross / 1.16% AER
|
0.70% gross / 0.70% AER (-45 basis points)
|
Premium Bonds prize fund rate to remain at 1.40%
Fixed term savings products - rate changes to go ahead from 1 May
For example, 1 year Guaranteed Growth Bond will be cut from 1.25% to 1.1% and 3 year Guaranteed Income Bond will
be cut from 1.65% gross to 1.25% gross.
