NS&I to cut Direct ISA rate to 1.5%

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National Savings & Investments (NS&I) is reducing the interest rate on its Direct ISA by 0.25% to 1.5% from 27 February next year.

It follows NS&I's regular review of the savings market, which includes an assessment of the interest rates payable on products comparable to Direct ISA. The change will affect more than 316,000 people, the Treasury-backed organisation said. NS&I chief executive Jane Platt said: "The Direct ISA rate stood out in our review of competitor rates offered on ISAs with no bonus component. We consider the revised rate offers a fair rate to customers in the current interest rate environment." It follows a number of changes made by NS&I this year to simplify its product range. In May, it ...

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