NS&I cuts its interest rate

NATIONAL Savings & Investments (NS&I) will cut the rate on its easyaccess Direct Isa from 1 pc to 0.75 pc from September 24.

In a blow to savers, the decrease comes when interest rates are expected to rise. Money Mail warned last month that NS&I could give savers a poorer deal.

The Government agency, which raises money for HM Treasury, wants to attract less from savers in this financial year. Its target is £6 billion (plus or minus £3 billion each side) between April 1 and March 31 next year — the lowest for five years.

Last year, when it launched new bonds and its Junior Isa, it wanted more than double at £13 billion.