NS&I cuts interest on savings by 0.25%

National Savings and Investments (NS&I) will reduce the interest rate on its direct saver accounts by 0.25% from today.

The rate will fall from 1.75% to 1.5% on savings because NS&I has exceeded its government funding target for the year. NS&I's net financing target for the year was £2bn. The latest forecasts suggest NS&I will deliver £4.5bn in net financing, meaning it can reduce its interest rate as it has attracted enough investment. Jane Platt, chief executive of NS&I, said: "Since November we have seen an increase in customer deposits. "This has been driven by a relatively small number of savers depositing large amounts of money, particularly into our direct saver account. "Reducing the rate...