National Savings and Investments (NS&I) has announced the interest rates on its fixed rate savings are set to fall by up to 1.85 per cent.
The move was put down to falling gilt yields since the last adjustment of the savings rate in September 2008.
N&SI has also revealed that the interest paid on its Premium Bond prize fund is to remain at 1.8 per cent, the level it has been at since November.
Peter Cornish, director of customer offer at the body, said: "We always set our interest rates in a fair and measured way. Since the changes to the base rate last December we have taken the time to understand the full impact of any potential changes on our customers."
Rates on most of NS&I's variable rate savings accounts will fall by up to one per cent, while Income Bonds will see 0.5 per cent shaved off the headline rate.
Earlier this week, David Black, principal consultant for banking at Defaqto, warned that people should take into account the affects of tax and inflation when choosing a savings account .
National Savings and Investments cuts interest rates
Financial Services > Savings > Savings and Investments News
National Savings and Investments cuts interest rates
Fri, 23 Jan 2009
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