National Savings NS&I - Will the market-beating rates continue for long?

reggie2k20

How long is this market-beating rate of 1.16% on NS&I Income Bonds (and 1.00% on the Direct Saver & 1.40% on Premium Bonds) likely to last?
Given that the government is borrowing at near-zero interest rates in the financial markets (even selling negative-yield bonds on occasions in the last couple of months), and the Bank of England have effectively started monetary financing by buying government securities in the secondary markets, what incentive is there for the govt to continue to offer 1% plus to savers?
I know they cancelled a planned rate cut a few weeks ago, and they have since been swamped with hundreds of thousands of new customers and savings. Any indication of when and how much the rate cut will be?
I imagine many banks have seen a flight of money out of their savings products in recent weeks...how will they react?

Thrugelmir

Funding the UK's borrowing requirement is a task that isn't going to end anytime soon. 

ColdIron

They have to give at least 60 days notice which is better than most

harsh_but_fair

Ollie the Octopus told me it will go down to 0.79% on the 17th August so plan accordingly...

Sea_Shell

harsh_but_fair said:

Ollie the Octopus told me it will go down to 0.79% on the 17th August so plan accordingly...

When did Marcus stop renewing their bonus' ...mine expires mid August. ..spooky?

HUMBUG

Just received an email saying they are reducing their rates  24th November 20 

Here are the changes:

NS&I account Current Rate New Rate (gross/AER) Direct Saver 1.00% 0.15% Income Bonds 1.16% 0.01%/0.01% Investment Account 0.80% 0.01% Direct ISA 0.90% 0.10% Junior ISA 3.25% 1.50%

Just closed my account now - after opening an income bond account in August - waste of time.

Thrugelmir

HUMBUG said:

Just received an email saying they are reducing their rates  24th November 20 

Here are the changes:

NS&I account Current Rate New Rate (gross/AER) Direct Saver 1.00% 0.15% Income Bonds 1.16% 0.01%/0.01% Investment Account 0.80% 0.01% Direct ISA 0.90% 0.10% Junior ISA 3.25% 1.50%

Just closed my account now - after opening an income bond account in August - waste of time.

There's already a thread running on the topic. No need to drag up an old one from the past. 

Aged

I took cash out of long-standing cash ISAs and transferred it into NSI Income Bonds recently. It seems no consideration is given to us oldies who rely on savings interest to supplement our (insufficient) income.