Money News
National Savings and Investments (NS&I) is decreasing the interest rates on its variable savings offers by up to 0.25% per annum. The decrease follows the recent cut in Bank of England base rate from 5.50% to 5.25%.
The revised interest rates come into effect immediately for all variable rate products, except for the Direct ISA, which saw its rate reduced on February 7th, Premium Bonds, which will take effect from March 1st and Income Bonds from March 6th.
Meanwhile, the Premium Bond prize fund rate will decrease from 3.80% to 3.60% p.a. free of Income Tax and Capital Gains Tax. NS& I will, however, continue to give away over one million tax-free Premium Bond prizes each month, including two £1 million jackpot prizes. And the odds of winning a prize with each £1 Premium Bond will remain at 21,000 to 1.
The provider has also announced the launch of two new fixed rate Bonds, the Guaranteed Income Bond and Guaranteed Growth Bond.
The Guaranteed Income Bond offers customers the opportunity to receive their interest as a monthly income, whilst the Guaranteed Growth Bond will provide interest to customers at the end of their chosen investment term.
Both the new Bonds offer customers the opportunity to invest between £500 and £1 million, with guaranteed rates of interest of between 3.85-4.05%, for either 1, 3 or 5-year terms.
25 February 2008 © Moneyextra.com
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