NS&I is also reducing rates on its fixed-rate savings products by up to 1.35% as a consequence of falls in gilt yields by up to 3.5% since September 2008. This change will not affect savings already invested in NS&I's fixed rate savings range.
NS&I's fixed savings rates take into account the returns on gilts, whilst its variable savings rates are affected by changes to the Bank of England base rate.
The Premium Bonds prize fund rate remains unchanged at 1.8% (the rate implemented after the November base rate change last year) and will be held for at least the March 2009 draw.
Some highlights:
Investment - new rate - change in rate from 19 February 2009
Income Bonds
£25,000+ 1.45% (-0.75%)
£500 - £24,999 1.20% (-0.75%)
Investment Account
£50,000+ 0.50% (-0.40%)
£25,000+ 0.40% (-0.15%)
£10,000+ 0.40% (+0.05%)
£1 - £9,999 0.30% (-0.05%)
