Setback for savers

Savers face a blow as NS&I cuts the rate on some deals for new customers.

People taking out the three-year guaranteed growth bonds will now get a rate of 1.95% guaranteed for three years. The previous rate was 2.2%.

Three-year guaranteed income bonds will now pay 1.9% (2.15% previously). The changes affect new savers rather than those who already hold the bonds.