Blow to savers as NS&I cuts rates

National Savings & Investments (NS&I) is reducing the interest rates on its income bonds, Direct Saver and Direct ISA from September, in response to the ongoing low interest rate environment.

In another blow to savers looking for a return, NS&I said it had cut rates on its products because of a general decline in the savings market. The cuts mean 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. Chief executive Jane Platt said: "Rates across the savings market have f...