NS&I cuts rates after Bank wields the axe

Savings rates are under threat after the Bank of England cut base rates in December, and National Savings & Investments (NS&I) is among the first to blink.

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Government-backed NS&I has now cut rates on its one, two, three and five-year British Savings Bonds, just two months after hiking them on November 7.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said the higher rates triggered a surge of new savings, with £2.45billion paid into NS&I in November alone: “Those higher fixed rates have done the job. Now they've been cut.”