NS&I rate cut coming soon

MORE than 380,000 savers with National Savings & Investments (NS&I) Direct Isa will see their rate cut from next Monday.

It will fall to 0.75 pc from 1 pc at a time when other rates are rising.

Account holders will earn the same rate as a year ago, when base rate stood at 0.25 pc against today’s 0.75 pc. The cut comes even though rates on other NS& I accounts are set to rise. Its Direct Saver will increase to 1 pc and its Investment Account to 0.8 pc.

Savers who manage their Direct Saver online will fare better with Shawbrook Bank’s Easy Access Cash Isa, which pays 1.3 pc. The top rate on phone-based accounts is Coventry BS’s Easy Access Isa at 1.25 pc.