NS&I cuts payouts on fixed income products

Affected are fixed interest savings certificates, index-linkedsavings certificates, pensioners guaranteed income bonds, fixed rate savingsbonds, and Series 21 capital bonds. NS&I says its move comes as retail banks have also cut their rates on some fixed savings rates products, and that because it does not engage in lending, it cannot subsidise the interest it pays out. “Yields on gilts have continued to fall since June 2004 putting pressure on the rates that NS&I offers,” the executive agency says. The new rates are as follows: New issues from 25 November 2004 ...