NS&I interest rate reductions

NS&I (National Savings and Investments) will be decreasing the interest rates on some of its fixed rate investments by up to 0.75% per annum on 17 September 2008.

This change follows significant decreases in the returns on nominal gilt yields since NS&I last increased interest rates on its fixed rate investments on 18 June 2008.

The rate changes will affect new investments only (and not current investments) in: Fixed Interest Savings Certificates, Children's Bonus Bonds, Guaranteed Income Bonds and Guaranteed Growth Bonds.

How NS&I prices its investments

NS&I prices its fixed rate investments according to a number of factors, the principal factor being the return on nominal or real gilts.

There will be no change to Inflation-Beating Savings which take into account the return on real yields on government stock (also known as index-linked gilts).

There will be no change to NS&I's variable rate accounts and investments which are priced in relation to the Bank of England base rate, and last decreased as a result of the base rate change on 10 April 2008.