Inundated NS&I drops savings rates
by Gill Montia
Story link: Inundated NS&I drops savings rates
National Savings & Investments (NS&I), the government-backed saving provider that benefits from a 100% guarantee on deposits, has cut some interest rates by up to 0.2%.
The body has been inundated by savers looking for a safe place to keep their money as turmoil sweeps through the global financial sector and governments nationalise banks.
According to a NS&I spokesman, the action has been taken to maintain a consistent level of market share.
The move will affect the UK’s Premium Bond fund, reducing the size of the pot, but will not change the two £1 million jackpot prizes awarded each month.
Meanwhile, government-owned Northern Rock, which also sports a 100% guarantee on deposits, withdrew a number of its savings products at the end of last week, again in response to a rising market share, which in the case of the nationalised bank is capped at 1.5%.
Add to Bookmarks:
Related stories to: Inundated NS&I drops savings rates
uSwitch.com: Banks quick to cut savings rate ...
Savings rates hit seven year high ...Inflation eats away at High Street savings rates ...
Savings providers lag behind base rate rises ...
Savings rates hit seven-year high ...
No Comments »No comments yet.
Leave a commentPrevious: « Iceland reaches out to Russia as banks collapse
Next: A&L fined £7m for mis-selling PPI »
Visited 445 times, 2 so far today