NS&I cuts savings rates

Tuesday, 22 April 2008 12:00

National Savings & Investments (NS&I) is dropping its interest rates on variable rate offers following the Bank of England's reduction of the base rate earlier this month.

The new rates come into effect on April 23rd on all variable rate products except NS&I's Direct ISA, which was cut on April 10th, Premium Bonds (which will take effect from 1 May 2008) and Income Bonds from 6 May 2008.

The prize rate on Premium Bonds falls to 3.6 per cent pa, with the odds of winning increasing from 21,000 to 1 to 22,000 to 1 so someone with the maximum £30,000 invested could, with average luck, win 16 prizes a year.

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