NS&I to reduce interest rates from 24 November 2020

National Savings & Investments (NS&I) has today announced interest rate reductions, effective from 24 November 2020, that will apply to NS&I’s variable rate products, including Premium Bonds, and some fixed term products.

NS&I has taken this decision in order to strike a balance between the interests of savers, taxpayers and the broader financial services sector. These reductions will see NS&I align its savings products against the rates offered by the banks and building societies.

The Premium Bonds prize fund rate will be reducing by 40 basis points, from 1.40% to 1.00%. The odds of any £1 Bond number winning any prize will decrease from 24,500/1 to 34,500/1. The changes will be effective from the December 2020 prize draw.

If you have any concerns regarding the interest rate reduction or wish to review your current financial plans please get in touch to see how we can help.