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National Savings

Community Veteran
Posts: 3,826
Thanks: 44
Fixes: 1
Registered: 24-09-2008

National Savings

Just received an email from NS&I:- Their Direct Saver rate has been reduced from 1.75% gross/AER to 1.5% gross.
As there has been no change in base rate, this change (I'd guess) must reflect cash looking for 100% security due to banks exposure to EU debt. Sad
2 REPLIES
tinto
Grafter
Posts: 262
Registered: 21-11-2010

Re: National Savings

It's not just NS&I, Mrs. tinto got a letter from RBS yesterday informing her that the interest rate on a Cash ISA that she's had with them for about three years is to be cut from 3.25% to 2.75%, WEF 1/3/12.
Needless to say, it's moving home, to Nationwide at 3.12%. 
@ journeys
My theory is that this particular ISA has been closed to new money for about a year now, and there's not been much going out, 3.25% being a good rate nowadays, and they hope enough mugs customers will let them away with it that it will bring them a nice increase for their profits
Community Veteran
Posts: 5,345
Thanks: 609
Registered: 23-09-2010

Re: National Savings

The problem with most of the good rates, including the Nationwide one which I recently transferred to, is that most of the rate is made up of a bonus which when it expires next year will drop the rate to 1%. So you have to keep moving your money every year.
Santander has an ordinary savings account on the same rate as the Nationwide ISA (as long as you're a non tax payer) that also is similarly made up of a bonus which will expire after around a year.