NS&I reduces rates on most variable savings offers

NS&I (National Savings and Investments) is reducing the interest rates on most of its variable rate savings offers by up to 0.75% per annum, following movements in the Bank of England base rate. Revised interest rates will come into effect from 19 February 2009.

NS&I is also reducing rates on its fixed-rate savings products by up to 1.35% as a consequence of falls in gilt yields by up to 3.5% since September 2008. This change will not affect savings already invested in NS&I's fixed rate savings range.

NS&I's fixed savings rates take into account the returns on gilts, whilst its variable savings rates are affected by changes to the Bank of England base rate.

The Premium Bonds prize fund rate remains unchanged at 1.8% (the rate implemented after the November base rate change last year) and will be held for at least the March 2009 draw.