Thursday 24th January 2008
Despite the fact that the Bank of England has fixed the base rate at 5.5 per cent for another month, savers could be facing a reduced return on their investments.
National Savings & Investments (NS&I) has lowered its rates of return on a number of products in light of the tightened conditions in the financial markets.
The organisation explains that the amount of interest it pays is based on yields in the gilts market, which is currently not performing as well as in November 2007.
This was the last time NS&I addressed the rates paid on its portfolio, the association reveals.
A 0.3 per cent reduction to 2.9 per cent has been effected on two-year fixed interest certificates, with a 0.15 per cent reduction to three per cent on five-year certificates.
On February 23rd two new products are scheduled to launch - a fixed-rate guaranteed income bond and a similar guaranteed growth bond.
©
Everything on preparing your finances for your children's futures. From Child Trust Funds through to tax planning. Request your FREE brochures here.
