Blow for savers as NS&I gets ready to cut its rates
Millions of savers have been dealt another blow as NS&I (National Savings and Investments) announced a string of rate cuts.
Some 23.5 million customers will be affected by rate changes to some variable rate products offered by NS&I.
From June 6, the rate on NS&I's Direct Isa will fall from 1.25% to 1%, with the Direct Saver falling from 1.1% to 0.8% and Income Bonds from 1.26% to 1%.
NS&I plans to make changes to Premium Bond prizes. From June 2016, the odds of winning will change from 26,000 to one to 30,000 to one.
The provider expects the changes will mean, for example, that the number of £100,000 prizes would fall from five in March to two in June and the number of £50,000 prizes would fall from 12 in March to five in June.
Money held with NS&I is 100% backed by the Treasury. NS&I has a duty to balance the needs of savers and taxpayers.