NS&I cuts rate after beating target

National Savings & Investments (NS&I) will cut a key savings rate today after large deposits sent the Government-backed institution through its financing target.

NS&I now expects to exceed its target this year, set by the Government at £0-4bn. A revised forecast reveals it expects to deliver £4.5bn.

To ease the pressure and moderate deposits, NS&I will decrease the rate which is paid on its Direct Saver account by 0.25 per cent to 1.5 per cent.