NS&I interest rate reductions

NS&I (National Savings and Investments) will be decreasing the interest rates on a range of its fixed rate savings offers by up to 0.65% per annum on 28 November 2007.

This change follows significant decreases in the returns on gilt yields since NS& I last reduced interest rates on some of its fixed interest offers on 24 October 2007.

The rate changes will affect new investments only in; Fixed Interest Savings Certificates, Fixed Rate Savings Bonds, Children's Bonus Bonds, Capital Bonds and Pensioners Guaranteed Income Bonds.

How NS& I prices products

NS& I prices its fixed rate products according to a number of factors, the principal factor being the return on gilts. Because the return on nominal gilts has fallen significantly since its last rate change, NS& I will now offer lower rates on most of its fixed rate products.

There will be no change to NS& I's variable rate products which are priced in relation to the Bank of England base rate, and last increased as a result of the base rate change on 5 July 2007.