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NS&I to SLASH rates as low as 0.01%
National Savings & Investments (NS&I) has made a shocking announcement that it will be cutting the rates on its easy access accounts to rock bottom levels from November 2020.
In summary the following accounts will be affected from 24th November 2020.
NS&I Income Bonds – which is currently a best buy easy access account which pays out a monthly interest of 1.15% gross, will be cut to just 0.01% gross/AER.
The NS&I Direct Saver – another easy access account which is currently paying 1% AER will be cut to 0.15% AER.
The third easy access account that NS&I has on offer - the Investment Account – will be cut from 0.80% AER to 0.01% AER.
Even children and ISA savers will not escape the carnage.
The Junior ISA which is currently a market leading account will be cut from 3.25% to just 1.50% and the Direct ISA will be cut from 0.90% to 0.10%.
Premium Bond holders will also be dismayed to hear that the interest rate applied to the prize fund will be cut from 1.40% to 1% - which will mean that from the December 2020 draw the odds of each £1 bond willing a prize will drop from 1 in 24,500 to 1 in 34,500
Quite simply there will be far better places for your money when these cuts take effect. And for some, cash may no longer be a preferred home for their money. But are there any alternatives?
If you’re dismayed with low interest rates and would like to speak to us about your future financial goals and returns why not get in touch and see if one of our expert independent financial advisers can help.
We are also currently offering all those with £100,000 or more in savings, investments or pensions a FREE cash flow retirement review worth up to £500.