As such, November 2020 marked the final month in which the Premium Bonds prize draw odds remain at the current rate.

Ian Ackerley, NS&I Chief Executive, said in September: “Reducing interest rates is always a difficult decision.

“In April we cancelled interest rate reductions announced in February and scheduled for May 1.

“Given successive reductions in the Bank of England base rate in March, and subsequent reductions in interest rates by other providers, several of our products have become ‘best buy’ and we have experienced extremely high demand as a consequence.

DON’T MISS

“It is important that we strike a balance between the interests of savers, taxpayers and the broader financial services sector; and it is time for NS&I to return to a more normal competitive position for our products.”

Variable rate savings products

Direct Saver

Currently: 1.00 percent gross/AER

From November 24 2020: 0.15 percent gross/AER (-85 basis points)

Investment Account

Currently: 0.80 percent gross/AER,

From November 24 2020: 0.01 percent gross/AER (-79 basis points)

Income Bonds

Currently: 1.15 percent gross/1.16 percent AER

From November 24 2020: 0.01 percent gross/0.01 percent AER (-114/115 basis points)

Direct ISA

Currently: 0.90 percent gross/AER

From November 24 2020: 0.10 percent gross/AER (-80 basis points)

Junior ISA

Currently: 3.25 percent gross/AER

From November 24 2020: 1.50 percent gross/AER (-175 basis points)

Fixed term savings products

Rate reductions for NS&I’s fixed term investments will take effect on November 24, with reductions between 90 and 115 basis points.

Fixed term investments are not on general sale and they are only available to customers who wish to renew an existing investment when it matures.

NS&I says current holdings will be unchanged until they mature.

Guaranteed Growth Bonds (1-year)

Currently: 1.10 percent gross/AER

From November 24, 2020: 0.10 percent gross/AER (-100 basis points)

Guaranteed Growth Bonds (2-year)

Currently: 1.20 percent gross/AER

From November 24, 2020: 0.15 percent gross/AER (-105 basis points)

Guaranteed Growth Bonds (3-year)

Currently: 1.30 percent gross/AER

From November 24, 2020: 0.40 percent gross/AER (-90 basis points)

Guaranteed Growth Bonds (5-year)

Currently: 1.65 percent gross/AER

From November 24, 2020: 0.55 percent gross/AER (-110 basis points)

Guaranteed Income Bonds (1-year)

Currently: 1.05 percent gross / 1.06 percent AER

From November 24, 2020: 0.06 percent gross / 0.06 percent AER (-100 basis points)

Guaranteed Income Bonds (2-year)

Currently: 1.15 percent gross / 1.16 percent AER

From November 24, 2020: 0.11 percent gross / 0.11 percent AER (-115 basis points)

Guaranteed Income Bonds (3-year)

Currently: 1.25 percent gross / 1.26 percent AER

From November 24, 2020: 0.36 percent gross / 0.36 percent AER (-90 basis points)

Guaranteed Income Bonds (5-year)

Currently: 1.60 percent gross / 1.61 percent AER

From November 24, 2020: 0.51 percent gross / 0.51 percent AER (-110 basis points)

Fixed Interest Savings Certificates (2-year)

Currently: 1.15 percent tax-free/AER

From November 24, 2020: 0.10 percent tax-free/AER (-105 basis points)

Fixed Interest Savings Certificates (5-year)

Currently: 1.60 percent tax-free/AER

From November 24, 2020: 0.50 percent tax-free/AER (-110 basis points)



Source Google News