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Media centre /
Press releaseNS&I INTEREST RATE CHANGES24 October 2007NS&I (National Savings and Investments) will be decreasing the interest rates on a range of its fixed rate savings offers by up to 0.60% per annum. All new rates come into effect on 24 October 2007. This change follows significant decreases in the returns on gilt yields since NS&I last increased interest rates on some of its fixed interest offers on 20 June 2007. The products affected include Fixed Interest Savings Certificates, Fixed Rate Savings Bonds, Children’s Bonus Bonds, Capital Bonds and Pensioners Guaranteed Income Bonds. How NS&I prices productsNS&I prices its fixed rate products according to a number of factors, the principal factor being the return on gilts. Because the return on gilts has fallen since our 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 influenced by the Bank of England base rate, and last increased as a result of the base rate change on 5 July 2007. ENDS Notes to editors
1. Tax-free means that interest and prizes are exempt of UK Income Tax and Capital Gains tax 2. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year the rate quoted and the AER will be the same 3. At current tax rates 4. Gross means the taxable rate of interest without the deduction of UK Income Tax
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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