NS&I to cut premium bond rate and other accounts

cooldude255220

• Premium Bonds prize pool being cut to 1% (from 1.40%)

• Direct Saver down to 0.15%

• Income Bonds down to 0.01%

• Direct ISA down to 0.10% 

Changes take effect from 24th November

Copying from a post on Reddit, thanks to original poster.

Speedbird676

Confirmed on NS&I website:

https://www.nsandi.com/our-products 

grumiofoundation

Thanks for that

MSE article on same subject, Im sure a thread will appear once this on has hundreds of posts!
https://www.moneysavingexpert.com/news/2020/09/premium-bond-prize-rate-to-be-slashed-to-1-/

csgohan4

that's a shame, guess no chance of inflation proofing your emergency savings without putting it in a fixed account

coyrls

There is going to be a vast amount of money moved out of Income Bonds and Direct Saver accounts.

4justice2

cooldude255220 said:

• Premium Bonds prize pool being cut to 1% (from 1.40%)

• Direct Saver down to 0.15%

• Income Bonds down to 0.01%

• Direct ISA down to 0.10% 

Changes take effect from 24th November

Copying from a post on Reddit, thanks to original poster.

Thought this was a misprint at first, but you're right, just confirmed on their own site. What a whopping drop. I'd just been debating about moving to them this weekend, glad I didn't. Can imagine the outflow from NS&I in two months, course by then everyone else may have cut their rates too...........

Sailtheworld

It's about time. Not sure why the taxpayer was expected to be providing market leading interest rates to the already wealthy.

nbrewitt

Wow, that £50 billion in cash that the BofE can’t account for is going to get much bigger as people really do stuff more under the mattress 

anewman

Sailtheworld said:

It's about time. Not sure why the taxpayer was expected to be providing market leading interest rates to the already wealthy.

The really wealthy would not invest in such accounts.

nbrewitt

Sailtheworld said:

It's about time. Not sure why the taxpayer was expected to be providing market leading interest rates to the already wealthy.

Irresponsible comment, not all NS&I savers would class themselves as wealthy by any means 

nbrewitt

It’s fairly obvious that NS&I have been given the heads up from the BoE that they are going to go negative on rates at their next meeting