NS&I slashes Premium Bond prizes and savings rates

Millions of savers were dealt another blow earlier this month as NS&I announced rate cuts across their range, with even Premium Bonds affected. National Savings and Investments (NS&I) was set up to provide a relatively cheap source of government borrowing. It offered security, simplicity and dependable returns and has remained a favourite for savers. As a state owned savings bank, it has never set out to deliver market leading returns, and actually has rules in place to prevent it offering products that would stifle competition. However, despite moderate returns, a combination of a ...

Savings: A new inflation beating account for savers?

SavingOver the past few months, interest rates on savings accounts have fallen to record low levels and with inflation rates predicted to increase, savers can be forgiven for feeling pessimistic. However, has the Autumn Statement brought some much needed relief to beleaguered savers? Details are sketchy, but the answer may be “yes”, all be it in a very limited way. A new NS&I bond In his first, and as it turns out last, Autumn Statement, Philip Hammond announced that National Savings & Investments (NS&I) would launch a new bond in 2017. Mr Hammond said that ...

Savings: Blow for savers as NS&I cuts Premium Bonds

National-Savings-and-Inve-001Savers have been left disappointed following news that National Savings & Investment (NS&I) is to cut the interest rates on some of its most popular accounts and reduce the returns payable to holders of Premium Bonds. Premium Bonds NS&I has announced that from 6th June 2016, the chances of winning a prize from Premium Bonds will rise from 1 in 26,000 to 1 in 30,000, with the overall prize fund reducing from £67.5 million to £62.9 million. Although technically prizes, to allow comparison with more traditional savings accounts, the returns from Premium Bonds ...

Savings: Interest rates on Pensioner Bonds cut

No quick return for NS&I Index Linked Certificates 150pxNational Savings & Investments (NS&I) has announced the interest rates payable to savers, who decide to roll over their 65+ Guaranteed Growth Bond when it matures on its first anniversary. The NS&I product, often referred to as a Pensioner Bond, was launched by the Government last year with huge publicity and very attractive interest rates. Savers who took out the one-year fixed rate bond enjoyed an interest rate of 2.80% gross, well above other similar accounts and these are now starting to mature. However, savers will ...