National Savings and Investments (NS&I) has announced a reduction in interest rates on its variable rate savings offers.
The decision is a reaction to the Bank of England's 0.25 per cent cut in interest rates, from 4.75 per cent to 4.5 per cent, which came into force earlier this month.
NS&I has followed in the footsteps of many savings providers by reducing its interest rates.
Peter Cornish, of NS&I, said: "The changes to our interest rates reflect the fall in the Bank of England base rate. This has affected banks and building societies across the board, with many of our competitors reducing rates to their savings products over the past month.
"We always price our offers fairly and consistently and if the base rate rises again, we would aim to make appropriate increases."
NS&I has cut interest on all of its variable rate savings offers by between 0.25 per cent and 0.30 per cent and these changes will come into effect from September 1st. To read more about investment, click here.
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