Fixed term savings products

On November 24, NS&I is also to reduce the rates offer for its fixed term investments, by between 90 and 115 basis points.

Current holdings will be unchanged until they mature, and customers do not need to take action now, NS&I said.

Guaranteed Growth Bonds (1-year)

Currently: 1.10 percent gross/AER

From November 24, 2020: 0.10 percent gross/AER (-100 basis points)

Guaranteed Growth Bonds (2-year)

Currently: 1.20 percent gross/AER

From November 24, 2020: 0.15 percent gross/AER (-105 basis points)

Guaranteed Growth Bonds (3-year)

Currently: 1.30 percent gross/AER

From November 24, 2020: 0.40 percent gross/AER (-90 basis points)

Guaranteed Growth Bonds (5-year)

Currently: 1.65 percent gross/AER

From November 24, 2020: 0.55 percent gross/AER (-110 basis points)

Guaranteed Income Bonds (1-year)

Currently: 1.05 percent gross / 1.06 percent AER

From November 24, 2020: 0.06 percent gross / 0.06 percent AER (-100 basis points)

Guaranteed Income Bonds (2-year)

Currently: 1.15 percent gross / 1.16 percent AER

From November 24, 2020: 0.11 percent gross / 0.11 percent AER (-115 basis points)

Guaranteed Income Bonds (3-year)

Currently: 1.25 percent gross / 1.26 percent AER

From November 24, 2020: 0.36 percent gross / 0.36 percent AER (-90 basis points)

Guaranteed Income Bonds (5-year)

Currently: 1.60 percent gross / 1.61 percent AER

From November 24, 2020: 0.51 percent gross / 0.51 percent AER (-110 basis points)

Fixed Interest Savings Certificates (2-year)

Currently: 1.15 percent tax-free/AER

From November 24, 2020: 0.10 percent tax-free/AER (-105 basis points)

Fixed Interest Savings Certificates (5-year)

Currently: 1.60 percent tax-free/AER

From November 24, 2020: 0.50 percent tax-free/AER (-110 basis points)

Commenting on the news, David Gibb, chartered financial planner at Quilter, said: "Today’s cuts to savings rates by NS&I will be a real kick in the teeth for savers at a time when many will be concerned about what is to come in the future.

"The government made it clear it wanted NS&I to raise more funds, but with economic uncertainty strife right now it has changed tack and wants a nation of spenders rather than savers.

“The cuts announced are significant and from next month will take NS&I from the top of the best buy tables right down to the bottom. Savers have had to contend with paltry rates from banks and building societies for well over a decade now, and it appears rates have somehow managed to get worse.

“Given the amount NS&I has raised this year, many will now find their money will languish in accounts that will fail to deliver the sort of interest they will require. These savings have become less than premium overnight.

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