NS&I cuts its rate on ISA

More than 320,000 savers were dealt an expensive blow yesterday when Government-backed National Savings & Investments cut its Direct ISA interest rate by 10 per cent to 2.25 per cent.

The move, NS&I said, "reflected market trend to lower rates on similar products". Its ISAs are popular with savers because they are backed and guaranteed by the Treasury.

This year NS&I cut the interest rate on its biggest savings offering, the Direct Saver account, from 1.75 per cent to 1.5 per cent after customers rushed in amid fears of market turmoil.

Comments