Premium Bonds alert: NS&I cuts interest rates across products - full list of changes
NS&I is cutting interest rates
NS&I/GETTY
National Savings and Investments (NS&I) recently announced changes to interest rates for its fixed-term products which came into effect on September 11.
The savings institution, which is primarily known for its Premium Bonds product, is cutting rates following the Bank of England's decision to ease the base rate.
New Issues of NS&I's British Savings Bonds, including two-year, three-year, and five-year options, have been released with updated interest rates.
These bonds are fixed-term Issues of NS&I's Guaranteed Growth Bonds and Guaranteed Income Bonds.
According to the Government-owned bank, these adjustments reflect the evolving savings market and are designed to offer customers a range of choices for their investments.
In recent years, the savings market has seen bolstered rates but analysts believe this trend is beginning to get reversed.
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Savings interest rates are being cut following recent actions from the Bank of England
GETTYThe new interest rates for British Savings Bonds are as follows:
- For the two-year option, the Growth rate is 4.25 per cent gross/AER, whilst the Income rate is 4.17 per cent gross / 4.25 per cent AER.
- The three-year bonds offer a Growth rate of four per cent gross/AER and an Income rate of 3.93 per cent gross / four per cent AER.
- For the five-year option, the Growth rate stands at 3.90 per cent gross/AER, with the Income rate at 3.83 per cent gross / 3.90% AER.
These rates apply to new Issues of the bonds, providing savers with a range of options for fixed-term investments.
The adjustments reflect NS&I's response to the changing savings market, offering competitive rates whilst maintaining its position within the broader financial sector.
NS&I Chief Executive, Dax Harkins, commented on the changes: "Our two-, three- and five-year fixed-term Bonds continue to offer savers increased choice, a fair return and longer-term security in a changing market."
"These changes ensure our interest rates are set at an appropriate position and continue to balance the interests of savers, taxpayers and the stability of the broader financial services sector."
While Premium Bonds has not been impacted by this latest wave of cuts, the prize fund rate for the savings account is susceptible to change.
As it stands, the prize fund rate for NS&I's signature savings product is 4.40 per cent.
LATEST DEVELOPMENTS:
Premium Bonds savers can check if they have won via the NS&I Premium Bonds prize checker app or website NSIUnlike regular savings product, there is not a traditional interest rate attached to Premium Bonds.
Instead, those who save their money via the product, are entered into a prize draw which could see them win sums of cash.
Two lucky individuals win the jackpot prize of £1million every month.
Other Premium Bonds cash prizes include £10,000, £50,000 and £10,000.
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