NS&I Direct ISA interest rate reduced to 4.80%

The interest rate paid on NS&I's Direct ISA will decrease from 5.30% per annum to 4.80% following the decrease in the Bank of England base rate by 0.50%.

The new rate becomes effective from today and is guaranteed to be 0.30% above base rate until 5 April 2009.

Direct ISA key features

Invest online and by phone only with a debit card
Interest rate guaranteed to be 0.30% above base rate until 5 April 2009
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 - customers who had opened an NS&I Cash ISA by 5 April 2006, can transfer into NS&I's Direct ISA but it is not possible to transfer in from any other provider.