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National Savings and Investments reduces interest rates

22 July 2005
Citing significant drops in gilt yields over the past three months, National Savings and Investments (NS&I) has reduced the interest paid on most of its fixed rate products.

The firm had hoped to maintain consistent rates, but the prolonged trend in gilt yields has forced it to make reductions.

Its variable rate products such as premium bonds, the investment account, and the easy access savings account remain unchanged.

Peter Cornish, head of customer offers for NS&I, said: "The changes to our interest rates reflect movements in the market. This trend has meant that many of our competitors have also had to reduce rates over the past two to three months.

NatWest, HSBC, ING Direct, Alliance and Leicester, Lloyds TSB, and Birmingham Midshires have all reduced their rates as well.

Mr Cornish added that if gilt yields rose again, NS&I would aim to increase its rates.

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