From the 1st May 2017, National Savings will be reducing the rates of interest across all of their cash savings products, including Premium Bonds and Direct ISAs. The reduction will affect existing accounts as well as new.
This follows reductions in interest rates across the savings market after the Bank of England’s reduction of the base rate by 25 basis points, to 0.25pc in August 2016. Ben Allen, Managing Director of Allen Tomas & Co said “Once again this is another blow for savers and the search for decent returns on deposits becomes harder. NS&I will remain popular due to the fact that they are backed by HM Treasury, however I expect more people to look to the stock markets for a portion of their cash in order to improve their long term returns”.
Please contact us should you wish to review your existing Savings and Investments.