On the 20th of September 2020 National Savings & Investments (NS&I) will dramatically cut the interest it pays on many of its savings accounts in November, slashing its top easy-access rate to just 0.01%. And Premium Bond holders will also have a much lower chance of winning a prize from December, with the prize rate to be cut to 1%.
The surprise announcement is a huge blow to savers, many of whom have turned to NS&I as savings rates have plunged during the pandemic. NS&I’s Income Bonds, which currently pay 1.16% AER, have often topped our easy-access savings best buys in recent months, while in June we reported that savings in Premium Bonds had hit a 14-year record.
NS&I had planned to cut the Premium Bonds prize rate to 1.3% earlier this year, but it cancelled the reduction – as well as planned cuts to its variable savings products – to support savers during the pandemic.
However, the upcoming cuts go much further than the reductions planned for earlier this year, with NS&I saying the new rates will be more in line with those offered by other banks and building societies.
For more on how to get the best interest rate for your savings, including our current top picks, and for full help on Premium Bonds – including how they work and whether they’re worth it – contact an EMC for more information.
For more information, please visit: www.emc-am.com
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Website: www.emc-am.com