NS&I Direct ISA interest rate lowers to 5.80%

The interest rate paid on NS& I's Direct ISA will decrease from 6.05% per annum to 5.80% following today's decrease in the Bank of England base rate by 0.25%.

The new rate becomes effective from today and is guaranteed to be at least 0.55% above base rate until 5 April 2008.

NS&I's Direct ISA is available online and by telephone only. Customers can invest up to £3,000 each tax year and have direct access to their account 24 hours a day.

The Direct ISA comes with the 100% capital guarantee which NS& I can offer because all of its savings and investments are backed by HM Treasury.

Direct ISA key features

Invest online and by phone only with a debit card
Interest rate guaranteed to be 0.55% above base rate until 5 April 2008
Convenience of opening and managing account online and by phone
Minimum deposit: £1,000
Minimum further deposit: £250 (or £100 by standing order)
Minimum withdrawal: £250 to nominated bank account
All interest free of UK income tax
Direct ISA is open to new customers and those who had opened an NS& I Cash mini ISA by 5 April 2006, but it is not be possible to transfer into NS& I's Direct ISA from any other ISA provider.